Russians rebel against Putin following decline of ruble
The Russian economy’s ambitious restructuring efforts are facing significant hurdles due to the persistent weakness of the ruble, a prominent aide from the Kremlin has admitted.
Maxim Oreshkin, assistant to President Vladimir Putin, conveyed concerns about the impact of the weakening ruble on the nation’s economic transformation, underscoring the rapid change that has outpaced initial predictions.
Speaking to the TASS news agency, Oreshkin identified “loose monetary policy” as the primary driver behind the devaluation of the ruble and the concurrent acceleration of inflation.
The Russian economy, he noted, is undergoing a transformation of unprecedented speed, needing adaptable strategies to maintain balance.
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The ruble’s decline reached an all-time low last week, marking a 16-month low against the dollar.
The ongoing increase in military expenditures coupled with a decline in exports has contributed to this depreciation, with the ruble trading below 99 against the dollar as of Friday.
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The ramifications of this trend on the broader restructuring plans of the Russian economy are becoming increasingly apparent.
Despite these challenges, Oreshkin offered reassurance by highlighting the Russian Central Bank’s readiness to intervene with the necessary tools.
He stressed that the institution is well-prepared to rectify the situation and ensure that lending rates are brought down to sustainable levels, a measure aimed at stabilising the economy and mitigating the repercussions of the weakening ruble.
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