{"id":132037,"date":"2024-12-01T07:03:41","date_gmt":"2024-12-01T00:03:41","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=132037"},"modified":"2024-12-01T07:03:41","modified_gmt":"2024-12-01T00:03:41","slug":"ruble-collapse-devalues-currency-to-less-than-a-penny","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=132037","title":{"rendered":"Ruble collapse devalues currency to less than a penny"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div data-cy=\"article-content\">\n<p>The ruble has come off its lows from earlier in the week after the central bank <a href=\"https:\/\/fortune.com\/2024\/11\/28\/russia-ruble-central-bank-inflation\/\" target=\"_self\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/fortune.com\/2024\/11\/28\/russia-ruble-central-bank-inflation\/\" data-type=\"link\" data-id=\"https:\/\/fortune.com\/2024\/11\/28\/russia-ruble-central-bank-inflation\/\" rel=\"noopener\">halted all foreign currency purchases<\/a> for the remainder of the year, but it remains battered\u2014and resources for preventing a further collapse are shrinking.<\/p>\n<div class=\"paywall\">\n<p>On Friday, the central bank set the official rate at about 108 to the U.S. dollar. While that\u2019s improved from Wednesday\u2019s rate of 114 on the spot market, that\u2019s still means one ruble is worth less than a penny.<\/p>\n<p>The ruble has tumbled 9% against the dollar since Nov. 21, when the U.S. sanctioned some 50 Russian banks, including Gazprombank, which has emerged as a top linchpin for Russia in currency markets. And for the year to date, the ruble has crashed about 20% against the greenback.<\/p>\n<p>While that could boost Russia\u2019s exports by making them cheaper, it will likely stoke inflation further by making imports more expensive. Even though Western nations have largely cut off trade with Russia, products from China have replaced many imports, and the ruble has fallen against the yuan as well.<\/p>\n<p>Over the summer, Russian businesses and banks were already suffering from a <a href=\"https:\/\/fortune.com\/2024\/09\/29\/russia-economy-lifeline-china-yuan-fx-moscow-exchange-us-sanctions-ukraine-war\/\" target=\"_self\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/fortune.com\/2024\/09\/29\/russia-economy-lifeline-china-yuan-fx-moscow-exchange-us-sanctions-ukraine-war\/\" rel=\"noopener\">shortage of yuan<\/a>, which\u00a0is the\u00a0<a href=\"https:\/\/fortune.com\/2023\/04\/03\/china-yuan-most-traded-currency-russia\/\" target=\"_self\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/fortune.com\/2023\/04\/03\/china-yuan-most-traded-currency-russia\/\" rel=\"noopener\">most traded foreign currency<\/a> in the country and a critical lifeline for the economy.<\/p>\n<p>Meanwhile, Russia\u2019s sovereign wealth fund has been tapped repeatedly to prop up the ruble, leaving the Kremlin with less firepower to battle another currency collapse.<\/p>\n<p>Just before the latest crash, liquid assets in the National Wealth Fund were $55 billion as of last month, <a href=\"https:\/\/www.bloomberg.com\/news\/newsletters\/2024-11-30\/russia-may-have-to-choose-between-guns-and-butter-in-2025\" target=\"_blank\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/www.bloomberg.com\/news\/newsletters\/2024-11-30\/russia-may-have-to-choose-between-guns-and-butter-in-2025\" rel=\"noopener\">according to Bloomberg<\/a>. That\u2019s down from $140 billion before Russia invaded Ukraine in 2022.<\/p>\n<p>Russia can still earn foreign currency by selling its oil and gas, but the shrinking sovereign wealth fund leaves Moscow at the mercy of energy prices, which have been falling amid weakening global demand.<\/p>\n<p>The central bank can also hike benchmark rates further to fight hot inflation while also creating more demand for ruble-denominated assets. But rates are already at a sky-high 21%, meaning additional increases would tighten the screws even more on Russia\u2019s economy.<\/p>\n<p>On Friday, the central bank said <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-11-29\/bank-of-russia-says-no-emergency-steps-needed-to-stabilize-ruble\" target=\"_blank\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/www.bloomberg.com\/news\/articles\/2024-11-29\/bank-of-russia-says-no-emergency-steps-needed-to-stabilize-ruble\" rel=\"noopener\">no emergency steps\u00a0are needed<\/a> to support the ruble, after President Vladimir Putin said Thursday that the situation was under control.<\/p>\n<p>Russia\u2019s currency crisis comes as analysts have predicted that the <a href=\"https:\/\/fortune.com\/2024\/11\/24\/russian-war-economy-ukraine-peace-deal-vladimir-putin-donald-trump\/\" target=\"_self\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/fortune.com\/2024\/11\/24\/russian-war-economy-ukraine-peace-deal-vladimir-putin-donald-trump\/\" data-type=\"link\" data-id=\"https:\/\/fortune.com\/2024\/11\/24\/russian-war-economy-ukraine-peace-deal-vladimir-putin-donald-trump\/\" rel=\"noopener\">economy will not be able to sustain Putin\u2019s war on Ukraine<\/a> past next year. For example, Russian factories can\u2019t make enough key weapons systems to replace battlefield losses, and old Soviet stockpiles are running out.<\/p>\n<\/div>\n<div class=\"sc-30bdb254-0 kxagCu article\" data-cy=\"subscriptionPlea\"><b>How many degrees of separation are you from the globe&#8217;s most powerful business leaders? <\/b>Explore who made our brand-new list of the <a href=\"https:\/\/fortune.com\/ranking\/most-powerful-people\/?&amp;itm_source=fortune&amp;itm_medium=article_tout\" target=\"_self\" class=\"sc-93594058-0 fowfrQ  \" aria-label=\"Go to https:\/\/fortune.com\/ranking\/most-powerful-people\/?&amp;itm_source=fortune&amp;itm_medium=article_tout\" rel=\"noopener\">100 Most Powerful People in Business<\/a>. Plus, learn about the metrics we used to make it.<\/div>\n<\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/fortune.com\/2024\/11\/30\/ruble-collapse-currency-crisis-penny-us-dollar-wealth-fund-vladimir-putin\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The ruble has come off its lows from earlier in the week after the central bank halted all foreign currency purchases for the remainder of the year, but it remains &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=132037\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[],"class_list":["post-132037","post","type-post","status-publish","format-standard","hentry","category-world","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/132037","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=132037"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/132037\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=132037"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=132037"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=132037"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}