Yes it doesn’t look that bad on the chart. But we have to remember Russia has done many things to stimulate the Ruble.
Having their oil trade in Ruble.
Heavily restricting buying foreign currencies.
Having double digit interest rates, central bank has 18% .
These are all very powerful measures to support the Ruble, and yet it’s declining compared to before the war.
It’s unknown to me if they have reduced liquidity of the Ruble too, but my guess from the collection of measures they have used, is that they have.
So all in all capital has become extremely expensive in Russia, and high inflation is eating the value too. And despite investments are nearly halted, the economy suffers heavy symptoms of overheating because of the war. Like really serious worker shortage.
I’m estimating (guessing) that on average, an ordinary household has probably lost around 20+% of their purchasing power.
That may not sound like a lot, but if you were just scraping by before, times are tough now. And Russia is not a rich country, so there are many who are experiencing tough times now.
But remember for many Russians a leader where there is no hunger in Russia, is considered a good leader!! That’s a frigging low bar.
But still a weak economy will undermine their war effort.
Yes it doesn’t look that bad on the chart. But we have to remember Russia has done many things to stimulate the Ruble.
Having their oil trade in Ruble.
Heavily restricting buying foreign currencies.
Having double digit interest rates, central bank has 18% .
These are all very powerful measures to support the Ruble, and yet it’s declining compared to before the war.
It’s unknown to me if they have reduced liquidity of the Ruble too, but my guess from the collection of measures they have used, is that they have.
So all in all capital has become extremely expensive in Russia, and high inflation is eating the value too. And despite investments are nearly halted, the economy suffers heavy symptoms of overheating because of the war. Like really serious worker shortage.
I’m estimating (guessing) that on average, an ordinary household has probably lost around 20+% of their purchasing power.
That may not sound like a lot, but if you were just scraping by before, times are tough now. And Russia is not a rich country, so there are many who are experiencing tough times now.
But remember for many Russians a leader where there is no hunger in Russia, is considered a good leader!! That’s a frigging low bar.
But still a weak economy will undermine their war effort.