For the first time in 7 years: the ruble on the stock exchange fell to unprecedented levels

The ruble exchange rate has been strengthening for a week in a row, and on June 21 its lowest value was recorded since June 2015.

This is evidenced by data from Investing.

So, at 11:28 am Kyiv time, the value of the ruble on the stock exchange was RUB 54.46 per dollar. However, the opening of trading was at the level of 55.63 rubles. According to sravni.ru, this figure is the lowest since June 25, 2015, when the value of the US currency was 54.07 rubles.

Dynamics of the ruble exchange rate on June 21 / Photo: Investing.com

The economy of the Russian Federation began a catastrophic recession

This opinion was expressed by financier, investment expert Andrei Movchan in an interview with DW. According to him, this situation should be considered in two aspects:

one. The exchange rate directly depends on the economic situation in the country. But now in the Russian Federation the currency is not freely convertible. Therefore, when the largest consumers of the currency are cut off from the Russian market, no one really needs the currency.

“It was forbidden to buy it, so it became cheaper. However, it still needs to be sold. All the currency that comes into the country when selling hydrocarbons and other raw materials is forcibly put on the market due to the rules for selling foreign exchange earnings. And there is especially no one to buy it, because that everyone who could do it was banned. Accordingly, the price of the currency falls sharply, ” Movchan said.

2. Recently, imports to Russia have more than halved, suggesting changes in consumption. Households, industries and businesses are buying half as much as they were buying three months ago.

“This means that they consume half as much three months ago. This indicates that a catastrophic recession has begun in the economy,” – summed up the expert.

Without restrictions, the dollar would cost more than 150 rubles

Due to the strict restrictions of the Central Bank of the Russian Federation, the Russian ruble has become an inconvertible currency.

As the former Deputy Chairman of the Central Bank of the Russian Federation Sergey Aleksashenko stated on the Popular Politics YouTube channel, the feature of a convertible currency is that any economic entity can exchange the national currency for any currency in the world at a single rate.

In the aggressor country, the actual rate differs from the rate on the stock exchange and in banks, and dramatically. If restrictions are lifted, then instead of 57 rubles, the dollar will cost 157 rubles.

Recall that the Verkhovna Rada has already registered a number of laws that completely prohibit the circulation of bloody currency in Ukraine and its use for international transfers and settlements.

We also talked about how Erdogan and Putin are destroying their economies.