when the russian ruble weakens significantly and breaks key thresholds, such as 100 rubles to the dollar, it signals deeper issues in the russian economy. this decline reflects underlying problems, including reduced demand for the ruble, inflation, and vulnerabilities in the broader financial system. a weaker ruble makes imports more expensive. for an economy reliant on imported goods for various industries, this drives up domestic prices, exacerbating inflation. russia's dependence on imports for technology, consumer goods, and even food amplifies this effect. the russian economy is heavily dependent on energy exports, especially oil and gas. global price fluctuations or reduced demand for energy due to sanctions or geopolitical tensions weaken revenue streams. sanctions also restrict access to global financial markets, limiting russia's ability to stabilize its currency through foreign reserves. a ruble breaking support levels signals a lack of confidence among domestic and international investors. this can lead to capital flight, further depleting foreign exchange reserves and weakening the ruble. public sentiment and political risk for citizens, a weaker ruble translates to declining purchasing power, making everyday goods more expensive. this can erode public trust in the government's economic management, increasing domestic instability. psychological and speculative effects too, certain exchange rate levels act as psychological barriers. breaking these can lead to speculative trading, accelerating the ruble's decline as traders bet against the currency. crossing the 100-ruble threshold not only symbolizes economic strain but also reflects the compounded effects of international isolation, structural economic weaknesses, and dependency on volatile energy markets. befote the war russian national treasury held 200 billion in assets worldwide, now its like half and falling. "russia stronk" meme cant back the ruble anymore.
Israel