FX.co ★ Geopolitics causes ruble to collapse

The official reason for the catastrophic collapse of the Russian ruble is found. It is a scary word geopolitics. Not so long ago it was used by specialists only, now it furiously entered the modern lexicon. If before such changes of the exchange rate had been explained with the word crisis, now it was replaced with geopolitics. Prices are rising due to geopolitics, wages are being cut due to geopolitics, crude oil is depreciating due to geopolitics, the ruble is falling... well, you know. One by one, the Russian currency hits historical lows. In early September, when the dollar climbed to 37.37 rubles, experts said this was a ceiling, but now after another collapse more and more analysts believe that the mark of 40 rubles is not a limit for the greenback. The Russian government blames "complex geopolitical factors" for the ruble's serious problems. Negative pressure of Western sanctions may have a significant impact on the Russian economy as a whole and on the exchange rate in particular. To avoid panic, the authorities calm nationals by statements that the economic situation in the country is stable, and the jump of the U.S. dollar against the national currency was not caused by financial problems, but statements of Russian President Vladimir Putin, who ordered to check a number of federal agencies and the Far East federal districts for "being ready to wartime tasks" and to conduct unannounced inspections of the Eastern military district. Therefore, according to the official reports, it is geopolitics which is guilty for the ruble's tumble, the economy has absolutely nothing to do with it, there are no reasons to worry about.