The collapse of the ruble contributes to the growth of the budget deficit due to increased military spending, falling export earnings and growing dependence on imports.
The Russian Central Bank is meeting urgently because of the rapid fall of the ruble, which has reached 101 rubles per dollar. On Monday, August 14, the report of the Financial Times.
The planned meeting of the Central Bank of the Russian Federation was supposed to take place on September 15, however, due to the rapid fall of the ruble, the regulator’s officials will meet on Tuesday and it is assumed that they may raise the key discount rate, which is 8.5 %.
The publication’s analysts note that, according to their estimates, the Central Bank of the Russian Federation will have to raise the rate to 10%.
On Monday, the dollar rose above 100 rubles on the Moscow Exchange for the first time since March last year, the euro traded up to 110 rubles.
The central bank of Russia says that the ruble is under pressure from a number of factors, in particular, a decrease in exports and a simultaneous increase in domestic demand for imports against on the backdrop of increased government borrowing, which is necessary for the aggressor to finance the war against Ukraine.
The publication notes that in July inflation in Russia exceeded the target level of the central bank at 4.3% and is expected to increase to 5-6.5% by the end of the year.
The cumulative net capital outflow from the aggressor country Russia in the period from February 2022 to June 2023 reached a record $253 billion.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.