Ruble Drops to New Lows Against Dollar and Euro
Recent figures show the ruble weakening past significant thresholds. The dollar dipped below 80 rubles for the first time since February 23 this year, and the euro slipped under 86 rubles for the first time since February 18. The trading activity occurred on the Moscow Stock Exchange as the session progressed.
By 18.48 Moscow time, the dollar was trading around 79.5 rubles, and shortly after, at 18.50 Moscow time, the euro’s lowest level stood at 85.59 rubles. These movements mark a clear shift in the currency’s value during the current trading day.
The downward move in both the dollar and the euro followed a government directive issued by President Vladimir Putin on March 23. He instructed the government to transfer all gas supply contracts to Gazprom and to set a ruble-based framework for these transactions. The instruction also directed the Central Bank and the Ministry of Finance to determine the mechanics of this transition. In practical terms, the goal is to create a path for buyers of Russian gas to acquire rubles within the domestic market within a week, aligning energy trade with ruble settlements.
At the academic end, Alexander Kazansky, a former associate professor at the Petersburg State University, Faculty of Economics, Department of Credit Theory and Financial Management, weighed in on the current dynamics. He noted that the ruble’s exchange rate against the dollar and the euro reflects a rapid move toward a new economic reality. The current trajectory suggests the possibility of further development in the currency’s performance as these shifts take hold in financial markets.