Russian Ruble Hits Lowest Value Since 2022

The Russian ruble has hit its lowest value against the U.S. dollar since March 2022, recently falling to 114 rubles per dollar before stabilizing at 109. This decline is attributed to a combination of international sanctions, particularly against Gazprombank, and rising geopolitical tensions following Ukraine's missile strikes into Russian territory. Analysts warn that the ruble's depreciation could affect Russia's military funding, forcing the Kremlin to reallocate federal budget resources, potentially compromising public services. Despite the economic strain, some Russians remain indifferent to the ruble's decline, citing their daily transactions in rubles. The situation is exacerbated by inflation, which the central bank is attempting to control with high-interest rates. The overall economic environment suggests that sustaining military expenditures will become increasingly challenging for Russia as the war continues.