Thursday, November 6, 2014

The Cost Of Putin's Ukrainian Adventure: Russia's Currency Is Plummeting

The Russian ruble is worth 41% less, in dollar terms, than it was on January 1. U.S. and E.U. sanctions, plus a big drop in oil prices, are to blame.



Pool / Reuters


That means that if you had $100 worth of rubles on January 1, they would be worth less than $60 today.



The ruble-to-dollar exchange rate has risen fast this year, meaning holders of the Russian currency need to spend more on imported goods priced in foreign currencies.


Bloomberg


The sanctions have hit the Russian financial sector particularly hard, limiting the ability of its biggest banks to operate in the global financial system.




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