In a recent analysis by Moscow correspondent Ivor Bennett, it has been highlighted that normal Russians are unlikely to share the Kremlin’s view of the collapsing currency and soaring inflation in Russia. The exchange rate reaching 100 roubles to the dollar is seen as a significant and symbolic threshold for Russians, bringing fears of financial instability and memories of past economic collapses. The rouble recently hit 114 against the dollar, leading to panic and alarm among the public.
The currency news has been described as resembling a war report, with advice to “buckle up your roubles” from newspapers like Kommersant and Rossiskaya Gazeta. The rouble has lost one-third of its value since August, with the US sanctions on Gazprombank playing a key role in triggering panic buying on the forex market.
The historical significance of the exchange rate for Russians dates back to Soviet times when owning foreign currency symbolized a higher standard of living. The current situation has sparked fears of inflation as imports become more expensive.
While the central bank has implemented measures to stabilize the markets, such as stopping foreign currency purchases, the government seems unconcerned about the weak rouble, with the finance minister even stating that it is favorable for exporters. However, with inflation already at 8%, ordinary Russians are unlikely to share this sentiment.
Overall, the analysis suggests that the Kremlin’s view of the economy may differ from that of the general population, with concerns about the impact of the collapsing currency and soaring inflation on the daily lives of ordinary Russians.
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Photo credit news.sky.com
