RUSSIAN Ruble Collapse

Video Summary

The value of the Russian Ruble has fallen significantly over the past 2.5 years, with the exchange rate dropping from around 9 to 1 against the Chinese Yuan to over 120 to 1. This has resulted in a major problem for Russia, as foreign countries are increasingly unwilling to deal with the Ruble, instead opting to use the Yuan. Russia’s largest trading partner, China, has refused to deal in Rubles, instead demanding payments in Yuan. This has led to a massive increase in the demand for Yuan, with Russian companies struggling to source the currency.

The Russian Central Bank has been trying to stabilize the currency, but its efforts have been unsuccessful. The value of the Ruble has continued to fall, making it difficult for Russian companies to import goods and maintain their competitiveness. The lack of liquidity in the Russian economy has led to interest rates rising to 19%, but even this has not been enough to stem the tide of inflation.

The situation is expected to worsen in the coming months, with the US sanctioning Chinese banks and financial institutions that engage with Russian counterparts on the sanction list. This will further restrict the flow of cash into Russia, exacerbating the liquidity crisis and reducing the profitability of Russian businesses. Overall, the falling value of the Ruble and the increasing reliance on the Yuan are presenting significant challenges for the Russian economy.

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