Russian Rouble Plunges Below 100 Against Dollar, Prompting Concerns of Emergency Measures

The Russian rouble has experienced a significant drop in value this year, losing almost 30% against the US dollar since January. Factors such as foreign currency outflows, declining trade activity, and a waning current account surplus have contributed to this depreciation. While a weak ruble has allowed the Kremlin to allocate more funds to military and social schemes, concerns remain about the currency's stability. The Bank of Russia has raised interest rates twice this year to combat the falling rouble and inflation. The rouble's current weakness poses challenges for the Russian government, including plunging export volumes and elevated consumer prices, making it harder for the average Russian to afford basic goods.