Illustrative image: Pixabay
On September 10th, the Russian ruble went down to beyond 70 per US dollar on the Moscow exchange in its lowest point since March 2016.
Xinhua cited data from the Moscow exchange site that showed the ruble was traded at 70.51 per dollar during the day, but it recoiled slightly to 70.38 by 17:45 Moscow Time (1430 GMT), as of 23:50 Moscow Time the against the USD was at 70.56. The session on September 7th, Friday was closed at 69.5088 per USD, so the loss of value happened over the weekend.
The ruble fell down to 60 per USD in early April after several months of stability after the imposition of the previous US sanctions.
The Moscow Times reported that the weaker ruble, hit by new sanctions against Moscow and a sell-off in other emerging markets, is seen filtering into consumer prices and once again boosting inflation, which the central bank has just recently managed to rein in.
Similarly to the loss of value of the Turkish lira, the reasons such as vulnerable economies and the sell-off in other emerging markets do play a role in the decrease. However, the major reason behind the devaluation are the different US, and in Russia’s case also EU, sanctions and tariffs imposed on the countries as a whole or various individuals and organizations.
The US Treasury announced in April it had imposed new sanctions on 38 Russian individuals and entities, including seven business leaders and 17 senior officials, for their alleged “malign activity” around the world.
On August 8th, the US announced its imposition on Russia of a new set of sanctions over the alleged poison attack on ex-Russian spy Sergei Skripal and his daughter Yulia in the British city of Salisbury in March. Russia has denied the allegations, stressing that British authorities have never presented any evidence on the matter.
Following the announcement, on August 9th, the ruble went down in value after reaching its two-year high.
The newly imposed sanctions were separated into two batches, the first one came into effect on August 27th. It banned the supply to Russia of dual-use products, goods and technologies related to U.S. national security, as well as supplies of electronics, components and technologies for the oil and gas industry.
The second batch is likely to be imposed by Washington around November, as reported by Xinhua. They include a ban of all U.S. exports to Russia except for food and agricultural commodities, a ban of all imports from Russia, suspension of flights by the Russian flag carrier Aeroflot to the United States, and a ban on all U.S. bank loans to Russia except for food purchases. Essentially, it suspends almost all of the US exports to the country.
Xinhua reported that the sanctions may also include blocking by the United States of all assistance to Russia from international financial institutions and a downgrade or suspension of diplomatic relations with Moscow.
According to the US, Russia may avoid the second batch of sanctions by providing “reliable assurances” that it “will no longer use chemical or biological weapons,” despite there have no initial evidence to prove that it has used any such weapons. Washignton says Moscow also needs to allow on-site inspections by the UN or other observers, namely the US.
In early August, Sputnik reported that a group of US senators led by Lindsey Graham proposed another anti-Russia sanctions bill, which target dollar-denominated transactions by Russian banks and US nationals’ operations with Russia’s sovereign debt.
Well, good new for Russian exporters and domestic high tech industry. And by the way, for self-sufficient country like Russia devaluation is not a big deal. People get the same wages and buy the same amount of domestic products. Only imported stuff will be more expensive. But trade wars torn Murrica is anothe story. Relatively strong dollar means that the last domestic jobs will be outsourced to China, high national debt and rising interest rates will cause dollar bubble burst and decimated middle class will join poor class on food stamps… That’s why America need WAR, here and now.
Using a war for distraction is only a short term fix. Eventually the bubble will burst. And if you then lose that war the burst will be even worse. Just look at what happened to the Argentine Junta and its war of distraction over the Falklands.
Former Nazi Germany is so close to America today . They had corporations and MIC and were “Exceptional” and needed “Space” as well.
The US has no need for space. Its got plenty. The correct historical analogy (it itself a load of nonsense, as every historical situation is very much unique) is not Nazi-Germany, nor Imperial Rome, but Classical Athens.
The Athenian democracy ruled an hegemonic empire in ancient Greece that spanned most of modern day Greece and the current Turkish west coast. They did so through naval supremacy. It had the largest most powerful navy and with it it offered protection to its allies against the Persians. In return it wanted its allies to either contribute militarily, or pay for its protections. The League of Delos as this alliance was called. The Athenian Acropolis was even built from money taken from the war chest of their Delian League. Through its system of allies, its bases all over the Aegean and the money from the League Athens ruled the Aegean basin. To the point that Athenian rule became ever more oppressive and they even invaded their own allies when they tried to leave the League. The Athenians had no interest in conquest, just maintaining and expanding their hegemony. Growing ever bolder the Athenians engaged in ever more crazy military schemes and of course war with the Sparta, culminating in the Peloponnese War. The 1st half of the war went reasonably well, with Sparta offering favorable terms to end it, but the Athenians rejected. In their hubris to waged the campaign to conquer Syracuse in Sicily, which turned to be their biggest military disaster from which they never really recovered. With newfound vigor the Spartans took to the seas with a new navy, financed by the Persian Empire, and eventually Athens was defeated, and democracy abolished. It now having gained a reputation of demagoguery and people voting themselves public money which for more then 2000 years gave democracy a bad name. And if you wonder why the new United States came up with such a complicated system of voting one only has to look at ancient Athens and what happened there.
there is no hightech industry in russia.
russia imports almast everything in field of electronics and engineering. so, big trouble for development this too weak ruble.
bs. all aerospace, military, agricultural and mining equipment are high tech.
most electronics is cheap tech, and 99.9% is produced in China anyway.
yes, some rockets, thats all. the mining industry is dependent on western technology.
also on crimea they were not able to build up power plant without machines from siemens. thes smuggled from germany :DD
russia is 3rd world country also with western help, without western technology is dying country.
NASA did not renew contract for russian protons. therefore is no money for russian space programs and is stopped the building of new cosmodrome. west europe has safer rocjets than proton. india similar, and cheaper by 30%. in 2030 no country will use russian technology. russia has no money to develope new types.
solomon, go back at tying that noose.
try to argue, little boy
Solomon, are you really that ignorant that you hope that someone buys into your lies?
He probably believes it, which is quite sad really.
you never answered the questions:
which russian PC processors are widespread in the world? which russian chips are in 30-50-70% of all produced electronics in the world? which russian mobiles are overwhelming on the world market? which russian electric cars show the way for the future? which russian large civil planes are produced and sold in billions range? which russian original medicaments were blockbusters in the last half century? where are 300-400-800 meter high russian buildings? (where is the technology to be able to build them?) where are perfect russian highway through the whole country? which russian cars are very famous and popular on the first world markets? which russian food is essential for high niveau gastronomy all over the world? (like gorgonzola, jalapeno, spanish bacons, french wines, etc.) which russian cosmetic products are without concurrency? which russian fashion industry is important part of human treasury, like italian ones? which russian turistic ships are organic parts of world travelling business? . . . you have only some rockets, some grenades, which without western chips and processors are non-functional. but newer weapons …. no way. you are not able to develope and produce(???) normal drones.
20 SU pak, 110 armatas, 8 onyx is nothing, bro!
Solomon, you’re either blind or plain stupid. Those things that you talk about – some of them are just funny and naive (like that fashion industry being important part of human treasury and the next season they are what?). Cosmetics is what exites you? Thanks for a lough.
so, you are stupid and russia 4th world loser country. bye ruskie, your grandchildren will never see russia.
You’re stuck in the past Solomon. When have you been in Russia last time?
And saddam had wmd as well right??
Yes, Yes…blah, blah, blah. Go read the WSJ, it will parrot your BS and you will feel right at home. They have no domestic Hi-Tech or engineering…that’s why they outclass the west in every field of military equipment. FAIL.
you are zeroiqman :DDDD
As long as the USA can get hold of a nations currency, they can crush it. The US can short a nations currency, and it doesn’t cost them a cent, because they and they alone can print dollars to infinity.
The only solution, is to destroy the US dollar. Join the fight, buy some gold or silver, and end the American tyranny permanently, and without resorting to violence.
Well said. In the world two kinds of industries exist. Whole world except USA (China, Germany, Russia, Iran etc…) produce goods and raw materials and USA (particularly deep state and banks) print money out of the thin air, make debt and imports everything (aka they have negative trade balance and unpayable loans). And moreover, common Americans are so AWAY FROM THE REALITY that they call it DEVELOPED ECONOMY OF SERVICES !!!!!!! Kill petrodollar, introduce gold standard and everybody is happy.
Yes you get it almost. Russia needs to arrest the remaining criminal Jewish oligarchs adn seize their property and take back control fo ther central bank and bank speculation in the Russia currency nad hevian tax teh USE of USSA dollars outside of trade with the USSA .
Meanwhile petrol barrel = 80 dollars per barrel and in November around 200 dollars if Iran close Hormuz…
…and if Russia should sink an aircraft carrier, where would the dollar descend to?