Rouble Sinks Past 100 To Dollar; Kremlin Fumes
The rouble slid past 100 per US dollar on Monday just as President Vladimir Putin's economic advisor said Russia was interested in a strong rouble but blamed loose monetary policy for the currency's weakening, Alexander Marrow and Felix Light reported for Reuters.
Photo Insert: The rouble fell to 100.4975 per US dollar, its weakest point in almost 17 months.
The rouble fell to 100.4975 per US dollar, its weakest point in almost 17 months. The rouble has lost about a quarter of its value against the dollar since Putin sent troops into Ukraine in February 2022.
Putin's economic advisor Maxim Oreshkin said in an op-ed for the TASS news agency that the Kremlin wanted a strong rouble and expected a normalization shortly.
"The current exchange rate has deviated significantly from fundamental levels, and its normalization is expected in the near future," Oreshkin wrote.
"A weak rouble complicates the economy's structural transformation and negatively affects the population's real incomes," he said. "It is in the interests of the Russian economy to have a strong rouble."
Before the war, the rouble traded at around 75 to the dollar. The Bank of Russia said the rouble lost around 30% against the dollar - on Russia's shrinking balance of trade. The country's current account surplus was down 85% year-on-year in January-July.