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Russia rouble sinks: It's above 100 against the dollar

Published 14/08/2023, 10:49
© Reuters
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Investing.com - The rouble broke through the 100 per US dollar barrier on Monday, with declines brushing 17-month lows. So far this year, the Russian currency has lost 30% of its value.

Putin's economic adviser Maxim (NASDAQ:MXIM) Oreshkin has blamed lax monetary policy for the rapid depreciation and said the depreciation would normalise in the near future, according to Russia's state news agency Tass.

The Bank of Russia has blamed the country's shrinking trade balance, as Russia's current account surplus fell 85% year-on-year from January to July, CNBC reports.

The central bank on Thursday halted foreign currency purchases for the rest of the year in a bid to shore up the currency, which is fuelling fears of rising inflation as Russia tries to fundamentally transform its economy in the face of growing isolation and punitive Western sanctions.

Russia's GDP beat expectations to grow 4.9% year-on-year in the second quarter, new figures from the Federal State Statistics Service showed on Friday, recovering from a 1.8% contraction in the first quarter.

(Translated from Spanish using DeepL)

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