Ruble Slips Below 100 vs. US Dollar
As NATO nations impose more sanctions against Russia for its ongoing invasion of Ukraine; the Russian economy is beginning to suffer. The Russian Ruble has been falling in value over the last few days, and it hit a new low today.
The Rouble had crossed the hundred mark against the US Dollar in the previous two days, but it fell below 115 today. It means that the Russian Ruble is now worth less than a US cent. The Ruble had been hovering around 70 for the previous two years before Russian President Vladimir Putin launched his invasion of Ukraine. It did, however, begin to rise sharply in the last week of February. Since the beginning of Russia’s invasion of Ukraine, the Ruble has fallen against the US dollar and the Euro daily.
The Russian financial sector is in crisis due to the country’s invasion of Ukraine; it has resulted in an economic blockade imposed by major nations and financial institutions. The United States and the European Union’s coordinated action has prevented Russia’s central bank from selling its reserves in dollars, euros, and other major foreign currencies.
Officials from the United States have stated that they intend to increase inflation in Russia to weaken the country’s monetary defenses.
Individual Russian citizens are paying the price for their government’s actions. Their cashless payment solutions have stopped working as global payment majors such as Visa Mastercard. Amex has blocked Russian financial institutions from their networks by imposing sanctions on Russia by the US government’s orders.
As part of its response to the crisis, Russia raised its interest rate to 20%. The government has also instructed companies to convert 80 percent of their foreign currency revenues to domestic currency.
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