The Russian Rouble faced continuing weakness on Wednesday as wages and retail sales nosedive by 9.2% – the biggest drop in domestic demand under Vladimir Putin. This apparent drop in consumer spending leaves Russia even more vulnerable, considering 30% drop in oil exports announced in June.
The Rouble has been the worst performing currency, globally, in the last three months; falling 25% in this time, and raising concerns of reignited inflation and a reduction in Russia’s purchasing power. Although the inflation fell from a 13 year high in March, it still currently sits at around 15.6%; with the renewed fall in oil prices over the past month. It is reported by ‘Moody’s Investors Service’ that the worst of the recession may well be still to come.
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