Last year, the Russian ruble appeared on the list of the worst global currencies, but this year it has become the world's best-performing currency. Against the US dollar, the ruble gained 13%, such robust growth has not been logged over the last 10 years. Although the stronger ruble is good news for ordinary people, it does not look promising for the Russian economy. Oil prices are still far from the level of $100 per barrel. There is a bitter sarcasm in the ruble’s strengthening. If the currency grows too much, it will lead to a decline in real income from oil exports. Actually, a weakened ruble served as protection from the worst effects of falling oil prices, and reinforcement of the national currency means that real incomes from each barrel have fallen. According to experts, in order to reach stability Russia must limit the budget deficit, and a weak ruble is the easiest way to achieve this purpose. Considering these circumstances, officials of the Central Bank of Russia have cut interest rates for the third time this year trying to stop the growth of the Russian currency. The government also said that the economy needs a weaker ruble to maintain the competitiveness of the Russian industry. Unexpected growth of the ruble is harmful for the country's budget, which is entirely dependent on tax revenues pegged to the US dollar and the euro.
