Polish and international outlets have reported that downward pressures are again mounting against the Russian ruble.
In October 2024 the ruble already reached one-year lows against the world’s other major currencies.
This week it has weakened further against the Chinese yuan, on Tuesday reaching a one-year low of 13.791 ruble to the yuan.
This is particularly significant because the strategic currency partnership with China has been a key part of Russia’s strategy to reduce its dependence on the US dollar and to limit the effect of sanctions. Commentators have pointed out that sanctions against Russia are thus indirectly boosting the Chinese economy.
Besides the strategic alliance with China, Russia has attempted to stabilise the value of its currency with interest rate increases (currently at 21%) pressuring countries wanting to buy Russian oil to buy in rubles.
The economic and sanctions battle against Russia is a key element of the overall conflict between Russia (and its allies, declared or undeclared) and Ukraine and its allies. Several expert opinions were voiced earlier this year that this was a battle Russia was winning. So far Russia has proved agile in avoiding the consequences of sanctions and economic isolation. But for how long?
Sources: Rzeczpospolita, Reuters, Atlantic Council, Newsweek, Business Recorder
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