The rouble continued to fall on Monday morning, trading at more than 100 to the dollar and 110 to the euro.
This is the first time this has happened since March 2022, when the Russian currency collapsed in the wake of its invasion of Ukraine.
The exchange rate fell to 100.73 roubles to the dollar and 110.22 to the euro on the Moscow Stock Exchange on Monday morning.
The continued weakening of the rouble in recent weeks has many Russians fearing for their standard of living, against a backdrop of returning inflation, Western sanctions, and the rising financial cost of the Ukraine war.
The very high inflation in 2022 – which exceeded 17% in the spring – had already undermined the purchasing power of millions of Russians.
The last few weeks in Russia have been marked by the return of inflation (+4.3% in July), which is linked to the fall in the national currency. This currency slump is partly due to the significant drop in revenue from the sale of hydrocarbons.
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The Russian Central Bank was therefore forced to raise its key rate to 8.5% on 21 July – the most obvious means of combating rising prices – and it has suspended its purchases of foreign currencies on the domestic foreign exchange market since last Thursday until the end of the year.
The weakening rouble is, however, helping the Russian state to replenish its coffers, since for every dollar or euro currently acquired, the government has de facto more roubles to cover its spending, which has risen sharply as a result of the invasion in Ukraine.
