Russia’s rouble continues to lose value against other currencies.
With an economy highly dependent on exports of oil the falling price of crude is having a big impact.
And the International Monetary Fund warned this week that Russia is “particularly vulnerable” to international economic turmoil.
The weakening of the Russian currency means it now takes just over 32 roubles to buy one US dollar – levels not seen since 2009, when the country was hit by the last global crisis. Back in the spring one dollar cost 27.35 roubles.
On the streets of Moscow it’s a talking point. One man says: “Russians who have financial liabilities that have to paid in dollars, of course this is going to affect them. It means that people will probably be taking fewer trips abroad and that sort of thing.”
Worries about Russia’s economic future mean investors are moving billions out of the country but ordinary people can’t do much except fret: “Of course this isn’t pleasant. Naturally, it will hit us in the wallet, but we can’t do anything. We can just talk about it – that’s all,” said a Moscow resident.
Russia’s central bank can do something – it has been selling foreign currency from its reserves to slow the drop in the rouble’s value.
Reportedly future government budgets are being drawn up based on oil prices continuing to slip.