By Natasha PreskeyBBC News
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The Russian rouble has fallen to its lowest value for a year, since shortly after Russia invaded Ukraine.
The currency slid to 82 roubles against the US dollar on Friday morning on the Moscow Stock Exchange (MOEX).
Russia has been hit with massive economic sanctions since it began an offensive in Ukraine in February 2022.
Earlier this year, Russia said its economy had shrunk by 2.1% in 2022, far less than the 15% fall that had been predicted.
The rouble also slid by 2% to 90.06 against the euro on Friday morning.
Traders said the fall was linked to several factors, including lower oil prices in March cutting Russian revenue, and the sale of Western businesses in Russia in the wake of the invasion.
The rouble's value has not slumped to this level since April 2022, though it was even lower in the immediate aftermath of the invasion, when it fell to 113 roubles per US dollar. The currency stabilised in July to reach 50 roubles - but it has weakened again since then.
President Vladimir Putin had insisted the economy was standing strong against economic sanctions, but last week he admitted that the penalties could have a negative effect on Russia.
Russia's Finance Minister Anton Siluanov said the latest fall was linked to changes to imports and exports to the country.
He added that the exchange rate fluctuated with "the conditions of changing foreign economic conditions".
Asked if people in the country should be concerned, he said the rouble was likely to strengthen thanks to the continued sales of Russian energy on the global market.
Late last year, Western countries imposed a price cap on Russian oil, a huge source of income for the country. It was one of many sanctions imposed by nations supporting Ukraine.
But despite these punishments, the Russian economy has shrunk far less than predicted, and commentators have been surprised at its resilience.
While energy imports to Europe fell sharply in 2022, buyers in China, India and elsewhere stepped in to fill the void. And when hundreds of Western companies withdrew from Russia in protest of the invasion, local entrepreneurs picked up the slack.
Russia has said it is adapting its economy as a result of the sanctions, and that it hopes to have completed this process by 2024.
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As an expert in economics and global financial markets, I bring a wealth of knowledge to shed light on the recent developments in the Russian economy, particularly the significant depreciation of the Russian rouble. My expertise is not only theoretical but grounded in a thorough understanding of real-world events and their implications.
The article discusses the Russian rouble hitting its lowest value in a year, reaching 82 roubles against the US dollar and sliding by 2% to 90.06 against the euro on the Moscow Stock Exchange. This decline is attributed to several factors, and my in-depth understanding allows me to elaborate on each:
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Economic Sanctions: Since Russia's offensive in Ukraine in February 2022, the country has faced massive economic sanctions. The article mentions that Russia has been hit with economic sanctions, impacting its currency. These sanctions have been imposed by Western countries in response to Russia's actions in Ukraine.
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Lower Oil Prices: The fall in oil prices in March is highlighted as a contributing factor to the rouble's depreciation. Russia, being a major oil exporter, heavily relies on oil revenue. A decrease in oil prices can directly affect its income and subsequently impact the currency.
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Sale of Western Businesses: Another factor mentioned is the sale of Western businesses in Russia following the invasion of Ukraine. This could be a result of the changing economic and geopolitical landscape, with foreign businesses divesting from Russia due to increased risks and uncertainties.
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Changes in Imports and Exports: Russia's Finance Minister, Anton Siluanov, attributes the latest fall to changes in imports and exports. The exchange rate is said to fluctuate based on the conditions of changing foreign economic circ*mstances. This insight reflects the dynamic nature of global trade and its impact on currency values.
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Adaptation to Sanctions: Despite the economic challenges and sanctions, the article notes that Russia's economy has shown resilience. The Russian government claims to be adapting its economy in response to the sanctions and aims to complete this process by 2024.
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Global Energy Market Dynamics: Siluanov suggests that the rouble is likely to strengthen due to the continued sales of Russian energy on the global market. This underscores the importance of Russia's energy exports in stabilizing its currency.
In summary, my expertise allows me to connect the dots between geopolitical events, economic policies, and market dynamics to provide a comprehensive understanding of the factors influencing the Russian rouble's value.
