Putin admitted an uncomfortable truth. Russia needs a cheaper dollar
The fight to strengthen the ruble is ongoing in Russia. The Russian currency is currently in its worst situation since practically the start of the war in Ukraine. That's why Vladimir Putin issued a special decree, which imposes a new obligation on large exporters, including the fuel and energy industry.
8:25 AM EDT, October 14, 2023
The Russian ruble has been worth the same, and even less than an American cent in recent weeks. Although initially, Kremlin's propaganda tried to downplay the decline of the national currency, concerning signals for Russians reached the public opinion. That the situation is troublesome was evidenced by, among other things, the decisions of the central bank and Vladimir Putin.
The Russian dictator - as we wrote on money.pl - issued a decree a few days ago, in which he imposed on the largest exporters the obligation to sell part of the profits obtained in foreign currencies. The Bank of Russia approved of this proposal, even though it had earlier claimed that such a step would not stabilize the situation.
- A slightly lower dollar rate is needed for the budget, hence a decree on foreign exchange revenues was signed - explained on Friday Vladimir Putin, quoted by the newspaper "Kommiersant".
Vladimir Putin wants to save the ruble by decree
A special decree, the content of which has not been made public, applies to 43 groups of companies, belonging to the fuel and energy complex, iron and non-ferrous metallurgy, chemical and forestry industry, and grain breeding.
An exact list of companies that the president's decision concerns hasn't been revealed by the Kremlin due to the "hostile actions of a number of countries". However, the specified sectors of the economy suggest that it probably concerns major players such as Gazprom or Lukoil.
On Friday evening, one dollar could buy 97.5 rubles. Within a year, the American currency has strengthened against the Russian one by 53.14 percent.
