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The video "Why is the Ruble Crashing?" explores the factors contributing to the significant decline of the Russian Ruble , which recently hit a low of $108 to the dollar after initially rebounding post-sanctions from the West. Key reasons for this fall include increased government spending linked to the war, ineffective export levels due to sanctions, and restrictions on Gazprom Bank that had previously provided substantial foreign currency. Despite the Central Bank's efforts, including steep interest rate hikes to combat rising inflation over 8%, the Russian economy remains under strain as international investors withdraw and locals shift their cash abroad. Recent changes allowing exporters to retain more foreign earnings have further reduced demand for the Ruble. Concerns about military escalation in Ukraine add additional stress to the currency. While potential interventions by the Central Bank or new capital controls could be implemented, they lack long-term viability. The only feasible paths to stabilize the Ruble seem to be a spike in global energy prices or a significant cut in government spending, both complicated by the ongoing military situation.
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