For citizens, and those who have not yet had time to withdraw assets from the country, the low dollar rate is, of course, a good opportunity. Good news for those who can buy foreign goods with reference to the current exchange rate.
But from the point of view of Russia’s national interests, there is nothing special to rejoice here..
Russia cannot:
👉buy cash dollars and euros
👉 cannot store non-cash dollars and euros
👉 cannot increase imports much to spend cheap dollars and euros
At the same time, the budget receives much less ruble income from exports.
If this rate continues, then exporters’ incomes will drop heavily in the 2nd-3rd quarter, as well as budget revenues.
The only way out of the situation is probably to buy the currencies of friendly countries, such as China, for a cheap dollar and euro.
But I’m not sure about the mechanisms, because I don’t fully understand the issue.
Who thinks what?
How can Russia benefit from the low dollar exchange rate?
