BOFIT Weekly Review 2016/04
Ruble struggles back from record low
The ruble’s exchange rate hit an all-time low January 21 after the price of Urals-grade crude oil fell below $25 a barrel. At bottom, one euro bought 93 rubles and one dollar 85 rubles. The oil price has since recovered a bit. On Wednesday (Jan. 27), Urals crude was going for about $29 a barrel. Higher oil prices have supported the ruble’s external value, which has again recovered in recent days.
Central Bank of Russia governor Elvira Nabiullina stated on January 20 that the central bank would refrain from intervening to prop up the ruble unless financial stability risks warranted. Nabiullina later noted that the CBR always stands ready to act during a major market disturbance.