Russia’s tanking ruble spells trouble for Putin

Russia’s ruble is in trouble. The currency has plunged to its lowest rate against the dollar since the weeks after the outbreak of war against Ukraine. On Wednesday, the ruble hit 110 against the dollar for the first time since 16 March 2022. The currency has recovered slightly, to 108 against the dollar this morning, but in Moscow people are worried.

Russians who lived through the tumultuous years after the collapse of the Soviet Union know all about the dangers of currency devaluation. While, clearly, things aren’t as bad as they were in the 1990s, the long memories of this period haunt Russians. This is a country where the currency has lost a huge chunk of its value in the past quarter of a century. It’s no surprise that, as a result, people follow the exchange rate closely and associate it with the economy’s overall health.