The Russian currency is experiencing severe turbulence: since early August the rouble has lost almost a quarter of its value, and yesterday it dipped to a low of 115 roubles to the dollar. Although its exchange rate recovered a little afterwards, the downward trend continues. The press takes a look at the causes.
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Something creaking in Putin’s system
Corriere della Sera notes:
“It seems that everyone is selling and few want to hold on to Vladimir Putin’s currency. Rumours from the Moscow financial system point to a widespread hunt for foreign currency, the only kind of currency that is useful for importing goods from the rest of the world. It seems to be scarce, whereas many are trying to get rid of their roubles…. But that’s just a symptom, not the cause. … The economy is clearly slowing down and something is creaking in Putin’s system. The announcement that the sanctions were completely useless was perhaps a little premature.”
Poverty is rife
In an interview with Echo, exiled politician Maxim Katz paints a bleak picture of Russia’s future:
“The economy and the entire domestic life of the country have been officially sacrificed to the decision to fight to the end. So the crisis will play out as follows: the people in the country will gradually become poorer and poorer and inflation will eat away at their increased wages. Those who have not profited from the war will suffer most, because they have nothing to eat. The state will not reduce military spending, but only increase it. Even more interesting is the trend that will continue as long as this political order exists: the active redistribution of property and power is guaranteed to continue.”
Back to the 90s
In a Facebook post, political scientist Abbas Gallyamov compares the current situation with the chaotic 1990s:
“The dramatic plunge in the rouble’s exchange rate and the soaring dollar are forcing Russians to recall the 1990s. This reduces a significant portion of Putin’s achievements to zero. … This is already the third shock in this category. The first is the war, the second the crime rate of his ‘heroes’. The ongoing ‘special operation’ is reminiscent of the tough and painful Chechen campaign, the rapes and murders committed by the hardened dogs returning from the front and the outbreak of crime in those ‘adventurous’ years of the 90s.”
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