The ruble hit its lowest rate since March 2022 (100 rubles for 1 dollar, 110 for 1 euro), when the Russian currency collapsed in the wake of the military offensive against Ukraine. This deterioration is linked to significant declines in income from the sale of hydrocarbons.
Many Russians fear for their standard of living. The return of inflation, Western sanctions and the growing financial cost of the Ukrainian conflict continue to weaken the Russian currency. The very high inflation in 2022, which had exceeded 17% in the spring, had already undermined the purchasing power of millions of Russians.
To counter this weakening, the Russian Central Bank (BCR) was pushed to raise its key rate to 8.5% on July 21, and since last Thursday suspended its purchases of foreign currencies on the national foreign exchange market.
The weakening of the rouble nevertheless allows the Russian state to bail out its coffers. For each dollar or euro currently acquired, the government has more rubles to cover its expenses, which have risen sharply due to the conflict in Ukraine.