Why is the ruble getting cheaper? What to do if the ruble depreciates? The ruble exchange rate is falling, what consequences to expect?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The catastrophic situation in Ukraine has led to a sharp depreciation of not only the national currency, the hryvnia, but also the Russian ruble. At the moment, this is the main reason why the ruble is getting cheaper. The situation is deplorable for all budgetary organizations, financial structures, and, first of all, it is a significant blow to the wallets of ordinary citizens. Mortgages, loans in foreign currency emptied the pockets of the population, it became very difficult to pay off debts when salaries, pensions, social payments did not rise a single step. What does "the ruble falls" mean? Speaking in a language understandable to all, this is a process of depreciation of the Russian currency against the dollar and the euro.

It should be noted that the ruble is falling along with the currencies of developing countries. This suggests that the majority of depositors withdrew their deposits, thereby bankrupting some banking structures and leading to cheaper assets and other securities.

The mood of the Russian people regarding the current situation

The exchange rate of the ruble is falling, and this fall is perceived by the citizens of Russia in a panic, because the gross part of the turnover in the country is due to purchases in neighboring countries, and since the exchange or delivery of food takes place at the rate of the US dollar, the current prices in the country differ significantly from the previous evaluation of goods.

If you take, for example, the Chinese, they are completely indifferent to the dollar. According to the leader of the country: “If our currency suddenly collapses, the prices for food and goods will not rise, as happens in Russia: we produce everything ourselves. True, financiers like yours would have been fired in the PRC long ago…”

The most important reason why the population is very concerned about the question of why the ruble is getting cheaper is that everyone is afraid of another devaluation. After all, quite recently, in 1998, the exchange rate of the ruble against the dollar fell by more than three times, namely from 6 rubles / dollar. and up to 21 rubles / dollar, which adversely affected the subsistence level of every citizen of the country.

What can the fall of the ruble lead to?

Continuing the theme of the fall of the ruble, it should be noted that a sharp decline can turn into a sharp increase in the currency. Unfortunately, ordinary citizens, not finding an answer to the question: "The ruble is getting cheaper - what to do?" - succumb to panic and change the ruble for a dollar or euro. This is not entirely correct. Financiers warn that there are no good reasons for accumulating foreign currency. The main thing is not to panic and not create conditions for the economy to fall in the country.

By the way, not only the ruble has recently fallen into a trapdevaluation. Also Australian dollar, Turkish lira, Argentine peso. This suggests that they began to massively withdraw deposits that are raw materials, and, accordingly, make investments in American debt securities, the yield of which will grow and grow.

Is it possible for the Russian ruble to strengthen?

Will the ruble get cheaper? According to the latest studies of the Central Bank, the strengthening of the national currency is possible when the Russian economy comes out of stagnation. And the current situation with the ruble is at the final stage, more subsidence of the currency should not happen. Such are the comforting forecasts for today.

The population of the country (as mentioned above) is worried that the ruble is getting cheaper. What to do in this situation? It is important to support the country's economy and not withdraw your own deposits en masse. This is a big blow to banking structures, it is easy to take everything out of the usual course, but it is difficult to restore it.

The problem of currency devaluation in Russia was caused by external factors, especially the situation in the neighboring country - Ukraine. Fluctuations in the world currency markets began in early August, when the international provider S&P downgraded the US rating. This led to a collapse in the stock markets. And no matter how much investors would like to withdraw their funds to foreign capital, it is important to take into account the global situation in the currency market. Now it is difficult to talk about the stability of the dollar or the euro. Each currency has a side of risk, not always American capital will be able to save savings from instability.

How to keep yoursavings?

In what currency should you keep your savings when the ruble becomes cheaper? Financiers are advised to distribute deposits, not to keep them in one currency, no matter how stable it may seem. You can buy gold and real estate, this is a good alternative at the moment.

If a depositor has a small amount of money, then you should not exchange for nothing. According to economists, you need to keep money in the currency in which you plan to spend this money later. The thing is that you can simply not have time to sell or buy a currency at a more favorable rate. Currency situations change very quickly, so people who are not employed in the financial sector are simply not able to track changes in the exchange rate.

What steps should be taken to strengthen the national currency of the Russian Federation?

1. Increase the growth of gross output, as well as reduce the supply of foreign products, replacing them completely with their own product.
2. No matter how sad it may sound, but the growth of wages in Russia undermines its competitiveness.
3. Reduce the growth of the country's spending, bring stability to the budgetary economy.
4. Increase oil prices, according to statistics, 1% of the cost of raw materials raises the ruble by 0.2%.
5. Involve the Central Bank to take custody of the ruble. Recently, Russia has left the tutelage of the national bank, and this has led to uncontrolled growth and fall of currencies on world markets.

You can talk a lot, but how the national currency will show itself is to predictvery hard. It is important to take the right steps towards strengthening it, not to invest huge amounts of money in dubious and not so important projects.

Reasons for the depreciation of the ruble

They say that the billion-dollar funding of the Sochi Olympics has become one of the reasons for the question of why the ruble is getting cheaper. Russia poorly assessed the strength of its economy, did not keep track of the country's expenses and incomes. Also, many political scientists blame Ukraine for the current deplorable situation. After all, a million-dollar loan that Russia issued was taken from the reserve fund, which was supposed to support the ruble exchange rate. But all this is just stupid talk and nothing more. After all, how can a small loan for a distressed neighboring country bankrupt the great country of Russia? There is another reason why the ruble is getting cheaper. The fall of the ruble is caused by negativity on the part of the fraternal peoples, America and other ruling countries. The unstable political and economic situation in Ukraine, the illegitimate transfer of Crimea to the ownership of Russia - this undermined the authority of the Russian Federation.

The entire situation in the country falls on the shoulders of citizens with average earnings. Having no investments in investments and other precious metals or documents, people are saving up the currency that will be used to pay for purchases tomorrow. On the one hand, this will significantly contribute to the strengthening of the ruble in the domestic market of the country, and on the other hand, it will allow the national currency not to depreciate.

The inevitable factor

Recently, prices for real estate, transport, travel vouchers, utilities and some food products have begun to rise significantly in the Russian Federation. It was impossible to avoid rising prices, because in relation to the dollar, all previous prices would not correspond to the purchase amounts. Special commissions are trying to stop a sharp jump in prices on the world market, as a result of which the internal economic situation in the country will stabilize.

Positive side

"Last year, the Russian economy entered stagnation. This hurts Russian public finances, which is most acutely felt by local budgets," says Eric Nyman. "At the same time, the easiest way to fill the state budget is with money that can be shared with local authorities power is precisely the depreciation of the ruble".

So, it is possible that if the ruble falls, this will play a role in the economic and political situation in Russia. All such situations cause a lot of negative and positive emotions of political scientists, all countries of the world take an active part in the life of the Russian Federation.

Optimistic forecasts

They predict both a rapid fall of the ruble and an increase in the currency in the near future. For the month of May 2014, they promise the stability of the national currency, which can balance the current economic situation in the country.

How long will the ruble fall? The crisis is not predicted. The National Bank talks about the gradual recovery of the ruble, after a sharp fall, short-term stability will come, and soon the nation althe currency will begin to slowly rise up.