The ruble was held hostage by the Syrian war
The tense international situation inevitably affected the position of the Russian currency. When the United States decided to introduce another package of anti-Russian sanctions, the ruble quickly crawled down. On some days, the euro even reached the rate of 80 rubles per currency unit, the dollar rose to 65 rubles.
The panic among investors also became a serious problem. Many investors rushed to get rid of their assets in Russian companies, rightly fearing a fall in stock prices. The Russian stock market has lost more than 820 billion rubles of capitalization. But in a week the ruble managed to regain its position a little. Firstly, high oil prices played a role, and secondly, the belief that the United States and Russia would still not cross the “red line” of the confrontation. For example, the famous posts of Donald Trump did not give any certainty as to whether or not the conflict with Russia over Syria will develop and in what scenario this conflict can go.
The ruble began to rise, the euro and the dollar - to fall in price. And as luck would have it - a new misfortune. American missile attacks on Syria have shown the world the determination of Donald trump to go to the end and show who is the master in the Middle East and the world. On Friday, April 13, the day before the strike on Syria, the dollar was trading at 62,05 rubles, the euro at 76,55 rubles. However, the further escalation of tension in Syria, which may follow the American missile attacks, can very negatively affect the Russian the economy.
Firstly, the shares of Russian companies will continue to fall in price - both those against which sanctions have been imposed, and all the others, since it is not known who will be the next victim of Trump’s sanctioned “collision”. Secondly, there is reason to believe that the ruble, which has restored its position a little, will start to fall again. The dollar against the backdrop of American missile strikes can reach 75-80 rubles per dollar. Naturally, such a situation will not affect the Russian business and ordinary citizens to the best extent. The purchasing power of the population will decrease, the state will have to take new measures to prevent large-scale inflation.
Now the US stock market is holding quite confidently, the situation on it is stable, which will contribute to high demand for oil and gold, as well as aggressive policy President Trump. If the United States and its allies continue to strike at Syria and, moreover, Russia will not find how to respond harshly and tangibly to the West, then the fall of the ruble will become inevitable. However, the Russian state will be able to fully compensate for some of the costs by selling part of its foreign exchange reserves. Then, funds will remain to fulfill certain social obligations. But in any case, the government will have to take care of how to free the ruble from the “Syrian trap”.
The panic among investors also became a serious problem. Many investors rushed to get rid of their assets in Russian companies, rightly fearing a fall in stock prices. The Russian stock market has lost more than 820 billion rubles of capitalization. But in a week the ruble managed to regain its position a little. Firstly, high oil prices played a role, and secondly, the belief that the United States and Russia would still not cross the “red line” of the confrontation. For example, the famous posts of Donald Trump did not give any certainty as to whether or not the conflict with Russia over Syria will develop and in what scenario this conflict can go.
The ruble began to rise, the euro and the dollar - to fall in price. And as luck would have it - a new misfortune. American missile attacks on Syria have shown the world the determination of Donald trump to go to the end and show who is the master in the Middle East and the world. On Friday, April 13, the day before the strike on Syria, the dollar was trading at 62,05 rubles, the euro at 76,55 rubles. However, the further escalation of tension in Syria, which may follow the American missile attacks, can very negatively affect the Russian the economy.
Firstly, the shares of Russian companies will continue to fall in price - both those against which sanctions have been imposed, and all the others, since it is not known who will be the next victim of Trump’s sanctioned “collision”. Secondly, there is reason to believe that the ruble, which has restored its position a little, will start to fall again. The dollar against the backdrop of American missile strikes can reach 75-80 rubles per dollar. Naturally, such a situation will not affect the Russian business and ordinary citizens to the best extent. The purchasing power of the population will decrease, the state will have to take new measures to prevent large-scale inflation.
Now the US stock market is holding quite confidently, the situation on it is stable, which will contribute to high demand for oil and gold, as well as aggressive policy President Trump. If the United States and its allies continue to strike at Syria and, moreover, Russia will not find how to respond harshly and tangibly to the West, then the fall of the ruble will become inevitable. However, the Russian state will be able to fully compensate for some of the costs by selling part of its foreign exchange reserves. Then, funds will remain to fulfill certain social obligations. But in any case, the government will have to take care of how to free the ruble from the “Syrian trap”.
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