The euro exchange rate exceeded 100 rubles for the first time since March last year. The common European currency reached a value slightly higher than 102 rubles on Thursday, while the US dollar was worth 93.59 rubles. At the same time, the index of the Moscow Stock Exchange rose by 0.95 per cent.
The ruble began to lose value from the beginning of June. On June 1, the euro was trading at the exchange rate of 86.6 rubles, reports Kommersant. The dollar exchange rate was 71.8 rubles. The euro was last worth over 100 rubles on March 28, 2022.
The Central Bank of Russia explained that the ruble’s fall resulted from the trade balance change. This year, the bank announced a significant decrease in the current balance compared to last year and the previous quarter, adding that this is the result of a decrease in export revenues and prices.
Attributing the decline in the exchange rate of the national currency to the drop in export revenues due to the cheapening of export raw materials (oil and gas), the Bank of Russia ruled out any risks to financial stability, reports RBK.
According to analysts, after the continuous growth in June and July, the value of the dollar and the euro will be affected by the balance of payments, regulatory rates and the effect of transactions for the sale of the business to foreigners.
The Ruble at The Level of April Last Year
The real effective exchange rate of the ruble in the period from January to May of the current year weakened by 18 per cent. At the same time, the real effective exchange rate of the ruble in May increased by 3.1 per cent compared to April, according to the regular report of the Russian Central Bank.
The real effective exchange rate includes the ruble’s value against the currencies of the main trading partners, taking inflation into account. The exchange rate should reveal the dynamics of exchange rates through the average value of the trading partners’ currencies. In contrast, the nominal exchange rate does not consider inflation, according to Kommersant.
