Ruble devaluation

Russian Central Bank Halts Ruble Buying Amidst Currency Slide

To mitigate the ruble’s slide to its lowest level since the 2022 Ukraine invasion, the Central Bank of Russia announced a suspension of foreign currency purchases on the domestic market until the end of 2024. This decision, extending a previous suspension, aims to stabilize financial markets. These purchases will be postponed until 2025, while the bank will continue selling currency from its sovereign wealth fund to manage the situation. The ruble’s devaluation, while potentially beneficial for exports, also risks increasing inflation.

Russo-Ukrainian War

Ruble Collapse Triggers Russian Fruit Import Crisis

Russia’s escalating inflation, reaching 7.4% year-to-date, is causing a ruble devaluation and impacting food prices dramatically; potato prices are up 350% since December. This has led to numerous cancelled fruit and vegetable import contracts from Turkey, Egypt, and Iran, as exporters demand price adjustments to offset currency risks. The Central Bank’s attempts to control inflation through interest rate hikes have proven largely ineffective, further jeopardizing the Russian economy. The combination of inflation and currency instability represents a critical economic challenge.

John Q. Hosedrinker Nov 26, 2024

Ruble devaluation

Russian Central Bank Halts Ruble Buying Amidst Currency Slide

Ruble Collapse Triggers Russian Fruit Import Crisis

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