The Russian ruble has depreciated sharply, with 1 dollar equal to 114.75 rubles

On November 27, the Russian ruble was sold in panic, and the ruble-dollar exchange rate fell by more than 8.5% during the session, reaching 114.75 rubles per dollar, a new low in a year; the Russian ruble-euro exchange rate has also fallen below 120 rubles per euro, and the intraday decline once exceeded 9%.

Since last Thursday, the ruble has fallen by more than 12% against the dollar and more than 13% against the euro.

Many analysts believe that there is no other reason for the ruble to fall, except that Russia’s military actions in Ukraine have triggered a new round of tensions with the West and new financial sanctions.

According to CCTV News, on November 21, local time, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) issued a statement announcing sanctions on Gazprombank, more than 50 Russian small and medium-sized banks, more than 40 Russian securities institutions and 15 Russian financial officials.

Sanctions on the Russian financial industry have exacerbated the ruble’s decline. Sanctions have disrupted foreign trade payments, especially for oil and gas, leading to a shortage of foreign exchange in the Russian market. Currently, many analysts expect the dollar-ruble exchange rate to hit 115-120 rubles per dollar by the end of the year.

The Russian Minister of Economy said the current depreciation of the ruble has nothing to do with fundamental factors. According to preliminary data from the Russian State Statistics Service, from January to October 2024, Russia’s agricultural production fell by 3.8% year-on-year to 7.76 trillion rubles (about 68.58 billion U.S. dollars).