The Economic Impact of Russia's Weak Ruble

The Russian ruble has experienced a significant depreciation, losing 40% of its value since last year. The weak ruble poses a problem for Russia's economic strategy, as it impacts the cost of imports and triggers inflation. The under the influence of the war, Russia's economy is booming, leading to a shift towards a deficit in the trade account and a depreciation of the currency. The Russian economy is facing challenges due to the war economy and a lack of anticipation by the central bank in managing the exchange rate. Despite the challenges, the Russian war economy continues, supported by its access to Asian demand and ongoing trade surpluses.