Russian Ruble is in Continuous Downturn

RUSSIA, Sept. 4 – The Russian ruble depreciated past 96.5 per USD, reapproaching the 17-month low of 100 touched on August 14th as efforts to prevent outflows of capital and an emergency rate hike did not sustain the currency’s brief rebound.

The rule is 32% below this year’s high as the gradual opening of financial markets allowed firms and households to flee to foreign assets, magnifying the effect that significant trade imbalances have on the ruble.

Trading Economic reports that, stronger supply chains since the start of sanctions boosted imports, with June’s trade surplus sinking by 75% from the prior year and 53% from levels before the war.

Additionally, the rapid deterioration of the Chinese economy hampered the outlook on import demand from Russia’s key trading partner, while the G7’s price ceiling on Russian oil drove Indian purchasers to grow wary of high import volumes.

The developments offset reports that the Kremlin partook in informal agreements with executives to sell some export-denominated proceeds into rubles.