Strong ruble could hurt Russian businesses, official warns
MOSCOW -
As the ruble strengthens to levels not seen in seven years, Russia's minister of economic development warned Wednesday that the country's businesses could suffer if the trend persists.
The ruble hit all-time lows in the first weeks after Russia sent troops into Ukraine in late February, dropping as much as 50%, to 150 against the U.S. dollar. It then began recovering, and this month has reached its highest exchange rate since May 2015.
- Complete coverage of the war in Ukraine
- Canada ships seeds to Ukraine
- WATCH: Debris rains down on Ukraine park after nearby missile strike
The Russian Central Bank's official exchange rate Wednesday was 52.9 to the dollar. Although the rate is seen by some as a sign that Russia is weathering Western sanctions, the strong ruble makes Russian exports more expensive.
"I think my colleagues will confirm that the profitability of many industries, even export-oriented, has become negative at the current exchange rate," economic development minister Maxim Reshetnikov was quoted as saying by Russian news agencies.
"If such a situation will last for several more months, I think many enterprises may come to the idea not only of curtailing investment processes, but also of the need to adjust current production plans and reduce production volumes," he said.
Central Bank head Elvira Nabiullina this month suggested that Russia should broadly reorient its economy away from relying on revenue from exports.
Analysts say the ruble's strength reflects high global prices for oil and natural gas and that wide-ranging sanctions mean Russia is buying fewer imports.
____
Get in touch
Do you have any questions about the attack on Ukraine? Email dotcom@bellmedia.ca.
- Please include your name, location, and contact information if you are willing to speak to a journalist with CTV News.
- Your comments may be used in a CTVNews.ca story.
YOUR FINANCES
Survival 'the only concern' as Canadian tenants struggle to pay rent
As rent prices rise, CTVNews.ca heard from a number of Canadians struggling to afford their homes. The surge in rent prices over the last few months has forced many to cut back on spending, with some having to relocate or move in with their parents.
How Canadians can save on exchange rates while travelling
At a time of high inflation, questions about what cards to use, how much local cash to withdraw and which currency conversion services to avoid are particularly valuable. Here's what to know when seeking cost-effective methods of spending money overseas.
As home prices drop, here's what you can get in Canada's most affordable markets
CTVNews.ca has compiled a list of homes in some of the most affordable regions across Canada, as many real estate markets see drops in average prices.
OPINION
OPINION | Economists are forecasting a recession in Canada, how should you prepare?
The next time the Bank of Canada raises interest rates on the scheduled date of September 7, 2022, it could potentially trigger a recession. Although there may be a chance that we don’t enter into a recession and the BoC is still hoping for a soft landing, it’s best to be prepared. Contributor Christopher Liew explains how.
How rising interest rates are making GICs more attractive for investors
Rising interest rates might be bad news for Canadians with mortgages, but it also means higher rates on savings vehicles such as guaranteed investment certificates (GICs), prompting renewed interest in the investments.
Millennial Money: A scarcity money mindset can cost you
Factors beyond your control, like inflation or supply chain shortages, can limit your access to the things you need and make it harder to achieve your financial goals.
5 ways being single can cost you more
Amid high inflation and rising cost of living, a person's relationship status can impact their finances. There are five ways in which flying solo can put you at a financial disadvantage and a few ways to mitigate them.
How to get into the housing market if you're gen Z or millennial
For millennial and gen Z Canadians, owning a home in this real estate market might seem like a pipe dream. In an exclusive column for CTVNews,ca personal finance contributor Christopher Liew offers some strategies to consider if you can’t afford the housing market yet.