The Russian ruble just blew through its “comfort zone” as the currency weakened in the wake of the failed rebellion

• The Russian ruble fell further against the dollar in the wake of the attempted Wagner rebellion.

• The currency has fallen to around 91 against the US dollar, way beyond its optimal value range.

• The ruble was one of the worst performing currencies in 2023, down 21% from its January levels.

The Russian ruble fell further in In the aftermath of the failed mutiny attempt of Wagner’s mercenaries In the past month, as the currency crossed a major “comfort zone” against the US dollar, according to Kremlin officials.

The ruble traded near 91 against the US dollar on Wednesday, extending its decline by 3% after the Wagner Group’s short-lived rebellion against Moscow last week.

The latest move means the Russian currency has crossed a key 80-90 range against the US dollar, which Russia’s First Deputy Prime Minister Andrei Belousov described as the optimal level for the currency.

The ruble was one of the worst performing currencies in 2023 thanks to sanctions and economic headwinds from Russia’s ongoing invasion of Ukraine, as investors look to the impact. Western trade restrictions And Increased military spending On the treasuries of the Kremlin. The value of the ruble against the dollar is now down 21% from the levels it was at the beginning of the year.

Ruble holders have also shown a willingness to switch to other currencies, as retail deposits held in other countries rose to $43.5 billion from early 2022 through May 2023, according to an analysis from Bloomberg Economics. Fifteen regions of Russia saw demand for other currencies rise by 70-80% shortly after the attempted Wagner revolt, Belousov previously said.

Meanwhile, the Kremlin has increased its dependence on other currencies, especially the Chinese yuan. the The government started selling its stock of 54 billion yuan The Russian Finance Ministry said in February to cover the decline in energy revenues.

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