Devaluation of the Ruble: Losses and Benefits

Abstract

The article deals with the problem of the weakening of the national currency in crisis and Western sanctions caused by the events in Ukraine. As a result of a sharp and prolonged drop in oil prices and other commodities, foreign currency earnings to our country has decreased significantly, there were problems with the filling of a profitable part of the federal budget.

With the economic crisis, burdened with anti-Russian sanctions, the Central Bank of the Russian Federation together with the government, it was decided to devalue the national currency. Saving the international reserves, the central bank refused to interventions to stabilize the exchange rate. The article shows how the devaluation of the ruble contributes to filling the state budget it affects the economy, the living standards of citizens.

The latest developments in Syria, related to the missile strikes of the United States, Britain and France, convincingly showed the weakness of the national currency of Russia. It falls down not only because of the decline in its economy, but also from negative news reported by the media.