this post was submitted on 25 Aug 2024
130 points (92.2% liked)

Ukraine

8066 readers
506 users here now

News and discussion related to Ukraine

*Sympathy for enemy combatants in any form is prohibited.

*No content depicting extreme violence or gore.


Donate to support Ukraine's Defense

Donate to support Humanitarian Aid


founded 2 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
[–] [email protected] 10 points 3 weeks ago* (last edited 3 weeks ago)

Yes it doesn't look that bad on the chart. But we have to remember Russia has done many things to stimulate the Ruble.
Having their oil trade in Ruble.
Heavily restricting buying foreign currencies.
Having double digit interest rates, central bank has 18% .

These are all very powerful measures to support the Ruble, and yet it's declining compared to before the war.
It's unknown to me if they have reduced liquidity of the Ruble too, but my guess from the collection of measures they have used, is that they have.
So all in all capital has become extremely expensive in Russia, and high inflation is eating the value too. And despite investments are nearly halted, the economy suffers heavy symptoms of overheating because of the war. Like really serious worker shortage.

I'm estimating (guessing) that on average, an ordinary household has probably lost around 20+% of their purchasing power.
That may not sound like a lot, but if you were just scraping by before, times are tough now. And Russia is not a rich country, so there are many who are experiencing tough times now.

But remember for many Russians a leader where there is no hunger in Russia, is considered a good leader!! That's a frigging low bar.
But still a weak economy will undermine their war effort.