Why the dollar is growing today in Russia and in the world

2024 Author: James Gerald | [email protected]. Last modified: 2023-12-17 14:00

The economic crisis is gaining momentum, negatively affecting the well-being of citizens. Why the dollar rate is growing in Russia is the most discussed topic today. Expert opinions will help you understand the issue.

How it all started

The coronavirus epidemic, which began in China and then spread throughout the world, negatively affected the economy. Starting from March 6, the dollar rate went up rapidly, which led to a collapse in oil prices. Its cost was 24.88 conventional units per barrel.

And this, according to analysts, is not the limit. But already on Thursday, March 19, 2020, the situation began to change. A barrel of Brent was given $ 28.63.

Another factor affecting the ruble exchange rate is the fall in gold prices. The unstable situation led to a slowdown in the economy, devastating the treasury of the Russian Federation. All because of the strong pegging of the ruble to oil.

In the case of the dollar, everything is different. The less “black gold” costs, the better the American currency feels, because such transactions are carried out in dollars.

Overseas get out of difficult situations by printing money. As many as the market needs, so many of them will be printed. This also does not have the best effect on their national currency. But the decline in prices for "black gold" is strengthening it.

The advantage of the dollar is that it is the world's reserve currency. It is to it during market fluctuations that investors transfer most of their assets, which is why the dollar is growing today.

What to expect for Russians

According to experts, before the vote on amendments to the Constitution, scheduled for April 22 of this year, the Government of the Russian Federation will do everything to contain the fall of the ruble. It's hard to say what will happen next.

Analysts urge citizens not to panic and not buy currency during the days of high demand. Because in situations like this, banks set the largest spread between buying and selling foreign currency.

In order not to lose interest, it is better to wait out and make exchange operations at the time of price stabilization, while strengthening the ruble's position. If spending in foreign currency is coming in the near future, it certainly makes sense to buy it.

Will the dollar continue to rise

Experts predict further growth of the dollar against the ruble. In their opinion, the exchange rate may reach 85 rubles per US unit. Fall is possible only in three cases:

1. The pandemic will decline. And by and large it does not matter whether the situation will improve in the whole world or in a particular country. In any case, it will be possible to establish market relations.
2. An end to the collapse in oil prices. Such a scenario can be counted on if OPEC + signs a "settlement agreement" by April 1.
3. The world economy is adapting to life in the new conditions and will gradually begin to recover.

How the collapse of the ruble will affect the lives of Russians

The fall in the national currency will primarily affect the value of foreign-made goods - cars, clothing, equipment. And, of course, on trips abroad.

Yuri Yudenkov, professor at the Faculty of Finance and Banking, RANEPA, shared these thoughts with Vechernyaya Moskva. At the same time, the rise in prices for essential goods, if any, will be within reason.

This situation is a real test of strength for the Central Bank. Despite this, he is trying to cope with inflation. If the oil market does not stabilize in the near future, the Central Bank will provide financial institutions with the opportunity to convert assets into cash at market prices.

According to Ivan Kopeikin, head of analytical content at BCS Broker, the situation may worsen in the near future, leading to the default of some companies. But not everything is so fatal.

In spite of everything, there is a possibility of the resumption of negotiations between the OPEC + countries, since what is happening does not suit either Russia, Saudi Arabia or the United States. Consequently, he called it timely to buy up currency in huge portions.

Yan Art, a specialist at XCritical, an expert of the State Duma Committee on the Financial Market, also urges not to panic. As soon as the work on stock exchanges stabilizes, residents who had previously left the market with their assets will begin to return.

Everyone is concerned not only about why the dollar rate is growing today, but also what it will be like in the near future. German Gref expressed his assumption that it will rise to the level of 100 rubles per one conventional unit.

Most economists take the same view on this matter. Against the backdrop of a worldwide quarantine, border closures and panic due to the widespread spread of coronavirus, a collapse of the global economy is possible. But this is with a difficult course of events.

The Central Bank is doing everything possible so that the situation does not get out of control, up to tough measures, including currency regulation. Despite the seriousness of the situation, analysts believe that after a hard fall, the world economy will quickly recover and begin to grow.

Accordingly, the ruble exchange rate is also stabilizing. This is the news for today, and how events will develop further - time will tell.

Summarize

1. The growth of the American currency is associated with the fall in oil prices. This state of affairs was caused by the coronavirus epidemic, which negatively affected the entire global economy.
2. Experts urge not to panic and buy up currency at the peak of its growth. Because during this period, banks set the largest spread between buying and selling currencies.
3. The Central Bank is taking all measures to stabilize. As soon as the infection recedes, the ruble exchange rate will return to its values, strengthening its position.