The Russian ruble hit a 12-month low against the dollar on Friday, dropping to 82 rubles to the US unit on the Moscow Stock Exchange (MOEX). This comes as Russia continues to face massive sanctions imposed over the Ukraine offensive for over a year now. The sanctions have had a significant impact on the Russian economy, and Russian President Vladimir Putin recently admitted that they could have negative consequences for the country.
Russia's Finance Minister Anton Siluanov, however, tried to downplay the significance of the ruble's fall, attributing it to fluctuations in foreign currency inflows and outflows to Russia. He stated that the exchange rate "adheres to market principles, and completely floats in the conditions of changing foreign economic conditions." Siluanov also reassured Russians that the country could count on cash inflows from the energy it continues to sell on the global market, which could lead to a strengthening of the ruble.
Despite Russia's efforts to adapt its economy to Western sanctions, the country is still facing challenges. The ruble's fall is just one example of the ongoing impact of these sanctions, and it remains to be seen how Russia will continue to navigate this difficult economic landscape.
