The ruble is collapsing.
The currency dropped by as much as 9.3% against the US dollar on Monday — the biggest decline since December 15.
Curently, $1 gets you around 58.54 rubles. It opened for trading to day at 53.49.
This crash follows the Economy Ministry's announcement that GDP contracted by 0.5% from a year earlier, following a 0.5% increase in October.
"This is linked to sanctions first of all, oil and the panic we saw on the market in December. The damage to the banking system and consumer sentiment will take a long time to repair," Dmitriy Polevoy, the chief economist for Russia and the CIS at ING Bank of Moscow, told the Moscow Times.
Additionally, oil prices have crashed again on Monday.
The currency dropped by as much as 9.3% against the US dollar on Monday — the biggest decline since December 15.
Curently, $1 gets you around 58.54 rubles. It opened for trading to day at 53.49.
This crash follows the Economy Ministry's announcement that GDP contracted by 0.5% from a year earlier, following a 0.5% increase in October.
"This is linked to sanctions first of all, oil and the panic we saw on the market in December. The damage to the banking system and consumer sentiment will take a long time to repair," Dmitriy Polevoy, the chief economist for Russia and the CIS at ING Bank of Moscow, told the Moscow Times.
Additionally, oil prices have crashed again on Monday.
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