It is very difficult for Russians to understand why oil is steadily getting more expensive, and the ruble and gasoline prices are still rising. When oil cost three times less than now, the president of the country explained that in such a situation there was no reason to be surprised at the ruble’s fall as the ruble and oil are inextricably linked in Russia. So, if “black gold” falls, then "wooden gold" also goes down. However, since that time the situation has changed a lot, but the ruble rate remains the same.
They say that it is beneficial for the government to hold the ruble at the bottom with the current oil price. To solve this difficult task, other sanctions imposed by the USA came. Since mid-April, investors have massively reduced their stakes in Russian assets by buying currency.
The central bank is now trying to stop further collapse of the ruble. The bank intends to raise ruble’s popularity among participants of the foreign exchange market by lowering the interest rate. However, it is necessary to achieve the previously set inflation targets. "As inflation gradually returns to 4%, the cycle of our decline is nearing completion. As we have said, the situation stabilizes in the region of 2-3%. These 2-3 percentage points are needed to preserve the attractiveness of our currency," said Igor Dmitriev, head of the monetary policy department at the Bank of Russia.
There are hopes that this is not just another discussion about how to raise the ruble, but the real work on the old mistakes. Although, even if these are just strong statements, Russians will think that there is no reason for concern, and the collapse of the ruble is a previously arranged event that will only make life better.
