The Russian ruble weakened against the dollar and the euro on Monday, mirroring the slide in global oil prices. Brent crude, a key benchmark for Russian oil exports, fell below $45 a barrel, triggering concerns about the impact on Russia’s budget revenues.

Impact on Russian Economy

The Russian economy is heavily reliant on oil and gas revenues, making the ruble particularly sensitive to fluctuations in energy prices. Analysts suggest that further declines in oil prices could lead to increased volatility in the currency market.

Factors Contributing to Ruble Weakness:

• Falling Oil Prices: The primary driver of the ruble’s decline.
• Geopolitical Tensions: Ongoing geopolitical uncertainties add to investor caution.
• Capital Outflows: Concerns about the Russian economy can lead to capital flight.

The Central Bank of Russia is closely monitoring the situation and has the tools to intervene in the currency market if necessary. However, authorities prefer to allow the ruble to float freely, adjusting to market conditions.