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The original was posted on /r/worldnews by /u/Silly-avocatoe on 2023-10-03 15:24:16.
Original Title: Russian rouble briefly returns to ‘laughing stock’ level that prompted emergency interest rate hikes last time The Russian rouble has faced volatility since the Ukraine war kicked off—now there’s inflation, shrinking current account surplus and more to worry about.
autotldr@lemmings.world [bot] 2 years ago
This is the best summary I could come up with:
A number of things may have influenced the drop in exchange rates—from foreign currency outflows and declining trade activity to Russia’s waning current account surplus.
When the rouble weakened to more than 100 to the U.S. dollar in August, the Bank of Russia called an “extraordinary meeting”, subsequently hiking interest rates by 350 basis points to 12%.
Putin’s economic advisor, Maxim Oreshkin, told state-owned news outlet TASS that “loose monetary policy” was causing the drop in the rouble’s exchange rate and exacerbating inflation.
“This level (100) is not a technical resistance, it’s an important psychological barrier,” said Russian investment group Alor Broker’s Alexei Antonov told Reuters.
As Moscow struggles to keep its currency strong while navigating other macroeconomic challenges, experts suggest that a drop in the rouble’s exchange rate is not quite an economic crisis, although it does ring alarm bells for the government.
“This is the closest we came to a real economic problem since the start of the war,” Janis Kluge, an expert in the Russian economy at the German Institute for International and Security Affairs told the Associated Press in August following the rouble’s drop to a 16-month low.
The original article contains 720 words, the summary contains 192 words. Saved 73%. I’m a bot and I’m open source!