Russian ruble tumbles to near 100 vs dollar, a level not seen since August

The Russian currency has been steadily weakening since late September. Renewed pressure has sent it to levels not seen since mid August, when the dollar climbed above 102 rubles, only stabilizing days later after the Bank of Russia hiked its key interest rate by 3.5 percentage points to 12% following an emergency meeting.

Weakening exports amid sanctions related to the country’s February 2022 invasion of Ukraine and a recovery in imports have weighed on the currency. The next central bank meeting to discuss interest rates will be October 27.

Reuters reported in August that authorities in Russia had been discussing the possibility of bringing capital controls that would force exporters to convert up to 90% of revenues to help stabilize the currency. Bloomberg noted that the central bank and government economic ministers had been at loggerheads over such a move. As some have pointed out, the ruble has also weakened amid climbing oil prices.