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After Wagner’s mutiny attempt, the Russian ruble continued to fall against the dollar.
The currency slipped to around 91 per US dollar, breaching its optimal value zone.
The ruble was one of the worst-performing currencies in 2023, losing 21% from January levels.
The Russian ruble fell further after the Wagner mercenaries’ failed mutiny attempt last month, with the currency breaching a key “comfort zone” against the US dollar, according to Kremlin officials.
The ruble traded at nearly 91 per US dollar on Wednesday, continuing its 3% decline following the Wagner Group’s short-lived rebellion against Moscow last week.
The latest move means the Russian currency has broken a key range of 80-90 per US dollar, which Russia’s First Deputy Prime Minister Andrey Belousov called the optimal level for the currency.
The ruble was one of the worst-performing currencies in 2023 amid sanctions and economic headwinds from Russia’s ongoing invasion of Ukraine, with investors eyeing the impact of Western trade restrictions and increased military spending on the Kremlin’s coffers. The value of the ruble against the dollar is now 21% lower than at the beginning of the year.
Ruble holders have also expressed a desire to switch to other currencies, with retail deposits held in other countries growing to $43.5 billion from early 2022 to May 2023, according to an analysis by Bloomberg Economics. In 15 regions of Russia, demand for other currencies rose by up to 70-80% shortly after Wagner’s attempted rebellion, Belousouv previously explained.
The Kremlin, meanwhile, has increased its reliance on other currencies, notably the Chinese yuan. The government began selling its 54 billion yuan holdings in February to cover falling energy revenues, Russia’s Finance Ministry said.
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