Central Bank's Deputy Head announces a decline in the Ruble.
Here's a rewritten version of the article:
The ruble dropped to 89.6075 rubles per dollar and 97.74 rubles per euro on the Moscow Exchange's online board at 16:30 Moscow time, according to the latest data.
The Bank of Russia had set the official dollar rate for July 5, 2023, at 89.545 rubles, a jump of 22 kopecks from the previous figure. The official euro rate also rose by 48 kopecks to 97.7382 rubles.
The sudden shift in the currency market came shortly after Ksenia Yuдаеva, First Deputy Governor of the Central Bank of Russia (CBR), declared in St. Petersburg that the regulator did not deem it necessary to reinstate the mandatory sale of foreign exchange earnings by exporters to prop up the ruble. This news was reported by RIA Novosti.
Yuidaeva additionally observed that the yuan market had emerged as the dominant one recently, while the dollar and euro liquidity were waning.
In her view, the CBR does not anticipate any risks to financial stability due to the recent sharp depreciation of the ruble, nor any "anomalies." Consequently, Yuidaeva concludes, there's no reason to discuss potential new risks to financial stability at the moment.
The ruble started to depreciate sharply last week, with the dollar hitting 90.2 rubles at one point - its highest since March 2022. Meanwhile, the euro appreciated by 5.04 rubles, reaching 98.28 rubles (also a high since March 2022).
During Tuesday, the ruble's highest exchange rate for the dollar was 89.84 rubles, and for the euro, it peaked at 97.995 rubles.
While there's no specific explanation for the significant weakening of the Russian ruble in July 2023, let's explore potential factors influencing currency exchange rates:
Currency Exchange Rate Factors
- Economic Sanctions: Economic sanctions imposed by various countries can impact a country's currency by hampering trade and foreign investment.
- Oil Prices: A decline in oil prices can hit a country's revenue and weaken its currency if the economy is heavily reliant on oil exports.
- Monetary Policy: Central banks like the Bank of Russia can manipulate exchange rates by altering interest rates or other monetary policies. Higher interest rates can attract foreign investors, bolstering the currency.
- Trade Balance: A positive trade balance, characterized by exports exceeding imports, can reinforce a currency. On the contrary, a negative trade balance can weaken it.
- Geopolitical Factors: Uncertainty and geopolitical tension can impact investor confidence and cause swings in exchange rates.
- Seasonal Factors: Seasonal variations in export activity, such as those seen in summer 2025, can influence exchange rates[2].
For a more precise analysis of the causes behind the ruble's depreciation in July 2023, it may be beneficial to delve into historical economic data or news archives from that period to pinpoint the exact factors at play.
- The Banking-and-Insurance sector has been closely monitoring the stability of the Russian ruble following its sharp depreciation, with the dollar reaching 7382 rubles according to recent reports.
- The industry analysts have highlighted that the Euro-to-Ruble exchange rate has also seen a steep increase, reaching 97.74 rubles per euro as of a recent report.
- The latest news suggests that Yuidaeva, First Deputy Governor of the Central Bank of Russia, has stated that the regulator sees no immediate need to implement measures to support the ruble, such as the mandatory sale of foreign exchange earnings by exporters.
- Financial experts have been analyzing potential factors influencing the currency exchange rates, such as geopolitical uncertainties and economic sanctions, as possible contributors to the ruble's depreciation.
- In light of the recent currency market shifts, the Executive Director of Yuidaeva Investment Consulting Firm commented on the emerging dominance of the yuan market and the waning dollar and euro liquidity.
