On November 29, 2024, Russian President Vladimir Putin assured that the ruble’s exchange rate is “generally” under control during a press conference in Astana, Kazakhstan. He acknowledged recent fluctuations in the currency but emphasized that the situation is manageable and proceeding according to plan.
- Putin claims ruble exchange rate is stable.
- No reason for panic, says Russian president.
- Fluctuations linked to budget and oil prices.
- Central Bank responsible for inflation decisions.
- Ruble declined sharply against dollar and euro.
- Official rate last seen in March 2022.
Putin’s comments come amid significant declines in the ruble’s value. Over the past week, the currency has sharply decreased, reaching nearly 115 rubles per dollar and surpassing 120 rubles per euro. The Central Bank set the official exchange rate at 108 rubles, a level not seen since March 2022. These fluctuations are attributed to various factors, including budgetary payments and global oil prices.
To combat inflation, Putin mentioned that the government has tools available that do not necessarily involve increasing interest rates. However, he stressed that the final decisions regarding monetary policy rest with the Central Bank. The recent downturn in the ruble has raised concerns about its impact on the Russian economy, which has been grappling with complex challenges both domestically and in neighboring countries.
As the situation evolves, the Central Bank’s response will be crucial in stabilizing the ruble. Analysts are closely monitoring the economic indicators and the government’s strategies to mitigate the effects of the currency’s decline. The interplay between oil prices, government spending, and inflation control will be vital in shaping the future of the ruble.
In summary, while President Putin reassured that the ruble’s situation is under control, the recent sharp declines highlight ongoing economic challenges. The Central Bank’s actions in the coming weeks will be critical in determining the currency’s stability and the broader economic outlook for Russia.
