Ruble's Rollercoaster: A Look into Russia's Economic Struggles

Russia's ruble has been on a wild ride, hitting a low not seen since the start of the Ukraine war. The central bank had to step in to shore up the currency, which slid to 114 against the dollar. This sharp fall has experts worried about the country's economic health. They see signs of a full-blown currency crisis brewing. The ruble's drop means higher prices for Russians, forcing the central bank to hike interest rates to a whopping 21%. But that hasn't stopped inflation from soaring to 8. 5%. The high cost of living is being blamed on sanctions, but the real cause might be the war and the government's increased spending on defense. Despite this, Russia's economy is still growing, mainly thanks to its oil and gas exports. But there are signs of a slowdown ahead. The International Monetary Fund predicts growth will dip to 1. 3% by 2025. The latest U. S. sanctions, targeting Gazprombank, are making things even tougher for Russia. They're cutting off the bank's access to the U. S. financial system, making it harder for Russia to do business globally. Experts say the war and Western sanctions are finally taking a toll on the Russian economy. The central bank's move to halt foreign currency purchases shows they're running out of options. As the ruble's value drops, it's clear that Russia's economy is feeling the heat.