Russian currency drops against US dollar

The Russian ruble fell nearly 2% against the US dollar on the Moscow Exchange during trade on Friday, reaching its lowest point since late March 2022.

The currency traded at 89.4 rubles to the dollar at 14:00 Moscow time, according to exchange data. The euro traded at over 97 rubles, also the lowest level since March 2022.

Central Bank Deputy Chairman Alexey Zabotkin gave assurances on Friday that the weakening currency does not pose any risks to financial stability, and explained that ruble has been impacted by the declining prices of Russian exports.

“We note that in recent months the prices for the goods that constitute the bulk of Russia’s exports have been going down. So have the global prices as well, even without talking into account the discounts that are applied to Russian exports. The exchange rate is the reflection of the worsening external situation,” the official said.

The Russian currency has been losing ground throughout the week, since the short-lived rebellion by the Wagner private military company. The group, led by Evgeny Prigozhin, launched an insurrection against Russia’s military leadership over the weekend. Armed units seized a military headquarters in Rostov-on-Don, and some forces marched on Moscow. After failing to gain the support of the regular Russian army, Wagner aborted its advance on the capital and reached an agreement with the authorities.

The ruble has also been under pressure in recent weeks due to lower oil prices and Western sanctions, which limit foreign investment and the currency supply from exporters.

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