Russian Rouble Hits Lowest Levels Since 2022

The Russian rouble has depreciated to its lowest levels since March 2022, notably falling to 14.5 against the yuan and 104.85 against the dollar, as Finance Minister Anton Siluanov acknowledged that this weakness benefits exporters despite high central bank interest rates. Siluanov's comments mark a rare admission from the government that they currently do not object to the rouble's decline, which he described as 'very favourable for exporters'. This depreciation follows new Western sanctions on Russia's financial sector amid ongoing tensions related to the Ukraine conflict, disrupting energy export payments and leading to foreign currency shortages. Analysts predict the rouble could reach 110 against the dollar by the year’s end, influenced by the dollar's strength and rising oil prices. The finance minister underscored the importance of the exchange rate for exports over interest rates, indicating a strategic acceptance of the rouble's value in the current economic climate.