The fact that the value is falling so fast has to do with the instability within Russia. For this, Hahn refers, among other things, to the mutiny of Wagner CEO Yevgeny Prigozhin. “From my field, I see that the markets have been rocked by the political instability and the Prigozhin mutiny.” Hahn also thinks the sanctions and the effect of the oil price are having ‘repercussions’ on the value of the ruble.
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Economist Edin Mujagic also sees an emotional cause. “I once lived in a country where there was fighting. The first thing you see with people is that they don’t want to keep the money they have in their country’s currency. Then you exchange your currency for good solid currency.’
However, there are opportunities for the Kremlin to keep the ruble attractive to its own population, says the economist. ‘This means that interest rates have to be very high, but that in turn has a negative effect on the economy. It’s hard enough because of the war and the sanctions.” Another possible measure is also the ban on the exchange of the ruble. ‘But this is a far-reaching measure.’
Putin tries to save the ruble
Earlier this week, the Russian president tried to depress the ruble, saying countries should avoid the dollar. Apparently the country is already doing it on its own, Putin said. According to him, more than 80% of trade between Russia and China takes place in the Chinese yuan or the Russian ruble.