The rouble hit a 17-month low against the dollar on August 14, highlighting the growing squeeze on Russia’s economy from Western sanctions and a slump in export revenues. However, for the sanctions to work, Russia would have to cave, and they’re not.
The Russian currency had lost nearly 40% of its value this year, weakening past 100 roubles to the dollar, as Moscow’s war in Ukraine takes a heavy toll. However, it has since strengthened.
The Russian rouble strengthened to 93 versus the US dollar and to 101 against the euro on Thursday for the first time since August 1 after the central bank raised the key interest rate to 12%.
Russians are mostly trading in yuan instead of the dollar and the euro since the sanctions came into effect.
This is what you can buy for $1 or 100 Rubles before the interest rate increase – watch:
It is important to note that with US inflation, higher interest rates, taxes and fees, and other factors, New Yorkers can’t get bread and milk for a dollar.
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