Russia Devalues Ruble

#finance
#financement

Russia is facing a bizarre new economic problem: the ruble has become too strong.

After years of sanctions, capital controls, high interest rates and major disruption to Russia’s financial system, the ruble has strengthened sharply — but instead of celebrating, Moscow is now taking steps that could help push it lower.

In this video, I look at why Russia may actually want a weaker ruble, how the exchange rate is squeezing exporters and reducing the value of oil and gas revenues when converted back into rubles, and why this is creating another headache for the Russian budget.

We also look at the extraordinary five-year journey of the ruble, Russia’s growing reliance on alternative currencies such as the Chinese yuan and UAE dirham, and why the apparent strength of the currency may tell us very little about the true health of the Russian economy.

Is the strong ruble really a sign of economic resilience — or another distortion created by sanctions, war spending and Russia’s increasingly isolated financial system?