The catastrophic situation in Ukraine led to a sharp depreciation of not only the national currency, hryvnia, but also the Russian ruble. At the moment, this is the main reason why the ruble is getting cheaper. The situation is deplorable for all budgetary organizations, financial institutions, and first of all it is a significant blow to the wallets of ordinary citizens. Mortgages, loans in foreign currency emptied the pockets of the population, it became very difficult to pay debts when salaries, pensions, social payments did not rise a notch. What does “ruble fall” mean? Speaking in a language that is understandable to everyone, this is the process of reducing the value of the Russian currency against the dollar and the euro.
It should be noted that the ruble is falling along with the currencies of developing countries. This suggests that most depositors withdrew their deposits, thereby bankrupted some banking institutions and led to the cheapening of assets and other securities.
The mood of the Russian people regarding the current situation
The ruble exchange rate falls, and this fall is perceived by Russian citizens in a panic, because the gross part of the turnover in the country is due to purchases in neighboring countries, and since the exchange or supply of food occurs at the exchange rate of the US dollar, the current prices in the country differ significantly from the previous valuation of goods.
If we take, for example, the Chinese, then they are completely indifferent to the dollar. According to the leader of the country: “If our currency suddenly collapses, the prices of products and goods will not rise, as happens in Russia: we produce everything ourselves. True, such financiers as yours in the PRC would have long been fired ... "
The most important reason why the population is very concerned about the question of why the ruble is getting cheaper - everyone is afraid of another devaluation. Indeed, most recently, in 1998, the ruble exchange rate against the dollar fell more than three times, namely from 6 rubles / dollar. and up to 21 rubles / dollars, which adversely affected the cost of living of every citizen of the country.
What can the ruble fall lead to?
Continuing the theme of the fall of the ruble, it should be noted that a sharp decline may result in a sharp increase in the currency. Unfortunately, ordinary citizens, not finding the answer to the question: "The ruble is getting cheaper - what to do?" - give in to panic and change the ruble to the dollar or the euro. This is not entirely correct. Financiers warn that there are no good reasons for the accumulation of foreign currency. The main thing is not to panic and not to create conditions for the economic decline in the country.
By the way, not only the ruble recently fell into the trap of devaluation. Also Australian dollar, Turkish lira, Argentine peso. This suggests that they began to massively withdraw deposits, which are raw materials, and, accordingly, make investments in American debt securities, the yield of which will grow and grow.
Is it possible to strengthen the Russian ruble?
Will the ruble become cheaper? According to recent studies by the Central Bank, the strengthening of the national currency is possible when the Russian economy emerges from stagnation. And the current situation with the ruble is in the final stage, more currency subsidence should not occur. Such are the comforting forecasts for today.
The country's population (as mentioned above) is worried that the ruble is getting cheaper. What to do in this situation? It is important to support the country's economy and not withdraw its own deposits in large quantities. This is a big blow to banking structures, it is easy to get everything out of the usual channel, but it is difficult to restore.
The problem of currency devaluation in Russia was caused by external factors, especially the situation in the neighboring country - Ukraine. Fluctuations in world currency markets began in early August, when the international provider S&P downgraded the United States. This led to a collapse in the stock markets. And no matter how investors would like to withdraw their funds in foreign capital, it is important to take into account the global situation on the currency market. Now it’s hard to talk about the stability of the dollar or the euro. Each currency has a risk side; American capitals may not always be able to save savings from instability.
How to keep your savings?
In what currency do you save your money when the ruble becomes cheaper? Financiers advise to distribute deposits, do not store them in one currency, no matter how stable it may seem. You can shop for gold and real estate, this is a good alternative at the moment.
If the investor has a small amount of money, then do not waste your time on trifles. According to economists, you need to store money in the currency in which you plan to spend this money later. The thing is that you can’t just not be in time to sell or buy currency at a more favorable rate. Currency-related situations change very quickly, so people who are not involved in the financial sector are simply not able to track changes in the exchange rate.
What steps should be taken to strengthen the national currency of the Russian Federation?
- To increase the growth of gross output, as well as reduce the supply of foreign products, replacing them completely with their own product.
- No matter how sad it may sound, the growth of salaries in Russia undermines its competitiveness.
- Reduce the growth of expenditures of the country, bring stability to the budget economy.
- To increase oil prices, according to statistics, 1% of the cost of raw materials raises the ruble by 0.2%.
- Attract the Central Bank to take custody of the ruble. Recently, Russia has come out of the tutelage of the national bank, and this has led to uncontrolled growth and fall in currencies in world markets.
You can talk a lot, but how the national currency will show itself is very difficult to predict. It is important to take the right steps towards strengthening it, not to invest a lot of money in dubious and not so important projects in order.
The reasons for the depreciation of the ruble
They say that billions of dollars in funding for the Sochi Olympics has become one of the reasons why the ruble is getting cheaper. Russia did not appreciate the strength of its economy; it did not keep track of the country's expenses and incomes. Also, many political scientists accuse Ukraine of this deplorable situation. After all, the million dollar loan that Russia issued was taken from the reserve fund, which was supposed to support the ruble exchange rate. But all this is just stupid talk and no more. After all, how can a small loan for a distressed neighboring country be bankrupted by the great country of Russia? There is one more reason why the ruble is getting cheaper. The fall of the ruble is caused by the negative on the part of the fraternal peoples, America and other ruling countries. The unstable political and economic situation of Ukraine, the illegitimate transfer of Crimea to the ownership of Russia - this undermined the authority of the Russian Federation.
The whole situation in the country falls on the shoulders of citizens with average statistical earnings. Having no investments in investments and other precious metals or documents, the people are saving up the currency that tomorrow will pay for purchases. On the one hand, this will significantly contribute to the strengthening of the ruble in the domestic market of the country, and on the other hand, it will allow the national currency not to depreciate.
Inevitable factor
Recently, real estate prices, transport, travel packages, utilities and some food products have started to rise significantly in the Russian Federation. It was impossible to avoid price increases, because in relation to the dollar, all previous prices would not correspond to the purchase amounts. Special commissions are trying to stop a sharp jump in prices on the world market, as a result of which the domestic economic situation in the country is stabilizing.
Positive side
“Last year, Russia's economy stagnated. It hurts the Russian state finances that local budgets are most sensitive to,” says Eric Naiman. “The easiest way to fill the state budget with money that you can share with local authorities is to reduce ruble rate. "
So, it is possible that if the ruble falls, it will play a role in the economic and political situation in Russia. All such situations cause a lot of negative and positive emotions of political scientists, all countries of the world take an active part in the life of the Russian Federation.
Optimistic forecasts
Predict both a rapid fall of the ruble, and an increase in the currency in the near future. In May 2014 they promise stability of the national currency, which will be able to balance the current economic situation in the country.
How long will the ruble fall? Crisis is not predicted. The National Bank is talking about the gradual restoration of the ruble, after a sharp fall there will be lasting stability, and soon the national currency will begin to slowly rise up.