๐Ÿšจ๐Ÿ’ต ๐“๐ก๐ž ๐‘๐ฎ๐ฌ๐ฌ๐ข๐š๐ง ๐ซ๐ฎ๐›๐ฅ๐ž ๐ข๐ฌ ๐จ๐ง ๐š ๐ฌ๐ญ๐ž๐ž๐ฉ ๐๐ž๐œ๐ฅ๐ข๐ง๐ž, ๐ง๐ž๐š๐ซ๐ข๐ง๐  ๐Ÿ๐ŸŽ๐ŸŽ ๐ฉ๐ž๐ซ ๐”.๐’. ๐๐จ๐ฅ๐ฅ๐š๐ซ ๐Ÿ’ต ๐Ÿšจ

The Russian ruble is on a steep decline, nearing 100 per U.S. dollar, yet the Kremlin seems unshaken. Unlike past instances where currency volatility sparked intervention, Russian officials appear comfortable with the rubleโ€™s current trajectoryโ€”suggesting a calculated approach tied to state budget priorities as government spending ramps up.

Why Is Russia Allowing the Ruble to Weaken?

Insiders close to the Russian government indicate that the rubleโ€™s decline boosts state revenue by increasing the ruble value of export earnings, a crucial advantage as Moscow plans for increased military expenditures next year.

Additionally, Russiaโ€™s pivot from Western currencies has reshaped the financial landscape, with the Moscow Exchange recently halting dollar and euro trading in response to sanctions.

Ripple Effects:

The Yuan, Exporters, and BottlenecksThe ruble isnโ€™t just falling against the U.S. dollarโ€”it has dropped 11% against the Chinese yuan, now Russiaโ€™s preferred currency for international trade following Western sanctions.

While the Kremlin emphasizes trade within BRICS nations and yuan-denominated settlements, currency shortages persist, hampering cross-border transactions.

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