Politico names key reasons for sharp fall of russian ruble

The ruble reached a two-year low against the backdrop of growing economic problems in the russian federation, caused by a full-scale war against Ukraine. The sharp fall in the national currency of the aggressor country was caused by a number of factors related to the consequences of the military aggression unleashed by the russian federation, Politico reports.

On Wednesday, the ruble fell to 114.75 per dollar, which is the lowest figure in the last two years. The Central Bank of russia has already suspended currency purchases until the end of the year, trying to stabilize the situation.

Among the key reasons for this situation, experts call:

• Low oil prices (down 4% this week)
• Strengthening international sanctions, in particular the US against Gazprombank
• Huge costs of maintaining the war in Ukraine
• Rising inflation (officially 8.5%, but in fact it could be much higher)

The head of the russian Central Bank, Elvira Nabiullina, warned of a possible further increase in interest rates, which has already caused harsh criticism from business.

As of the end of trading on November 27, the ruble exchange rate had partially recovered to 113.15 per dollar, but economists predict further instability of the russian currency.

As previously reported, on Wednesday, November 27, the ruble exchange rate fell to 114 rubles per 1 US dollar, and 120 rubles per 1 euro. Previously, this was only in March 2022, when the russian federation launched a full-scale invasion.