The value of the collapses Ruble. The Russian coin has suffered a severe backlash since the beginning of the war in Ukraine, but slowly, thanks to a very aggressive monetary policy by the Central Bank of Russiahad managed to partially regain its purchasing power. Over the weekend, however, it collapsed to levels not seen since at least last June.
The main reason is the cross-border operation of the Ukrainian army in the Russian region of Kursk. Kiev’s armed forces took the border guards of Kiev completely by surprise. Fly, establishing control over hundreds of square kilometers of territory. Although the surprise factor has now vanished, new fronts are reportedly opening up inside Russian territory.
The value of the ruble collapses
The ruble, the current currency in Russia, he lost in a few days almost 4% of its valuesettling at around 1 cent over the weekend. These figures are comparable to those of early June, when the currency was still halfway through its rally that had led it to appreciate by around 10%. This is therefore a very sudden collapse that has wiped out almost half of the results of recent months, supported by difficult interventions by the Russian central bank.
The recent history of the ruble has been very troubled. Its lowest point in comparison with the US dollar was immediately after the invasion of Ukraine, but in the months immediately following the spike in gas prices had brought the currency back from the abyss of 7.5 thousandths of a dollar to 16 cents. With the end of gas speculation, however, the flow of foreign money to Russia ended and as a result the Central Bank found itself having to issue a very large number of rubles without cover, to finance the war effort.
Then begins an unstoppable decline in the value of the ruble that lasts for practically a year and forces the Russian Central Bank to increasingly difficult and complex interventions to stabilize the currency. The bottom is reached on October 6, 2023, when the ruble falls again under a cent of a dollarIts value almost halved in a year, but from that point until mid-2024, the country’s financial institutions seemed to have been able to maintain a certain stability of the currency.
Ukraine’s invasion of Russia
The situation was once again precipitated by the war in Ukraine. The Kiev army, on the night between August 6 and 7, overwhelmed the border checkpoints of the Russian region of Kursk, taking up positions between 15 and 30 kilometers deep in a few days. What seemed like one of the many impromptu operations of the Ukrainian army in enemy territory has in fact turned into a counter-invasion, which does not seem to want to stop.
In the last hours of August 11, in fact, the news arrived that the governors of the Kursk regions and the adjacent one of Belgorod They ordered civilians in some border districts that have so far been spared from hostilities to immediately evacuate their homes due to movements on the border with Ukraine.
