Prigozhin's rebellion shakes the ruble: the dollar exchange rate in Russia breaks records

The dollar exchange rate in Russia reached RUB 90 for the first time since March 2022. The ruble thus fell to a 16-month low. The Russian currency shook after the failed coup by the head of Wagner PMC Yevgeny Prigozhin, and since then, the outlook for the ruble has been disappointing.

According to the Moscow Stock Exchange, on 4 July 2023, the ruble-dollar exchange rate dropped to the psychological level of 90 rubles per dollar. The euro was trading at almost RUB 100.

Even the Russian media acknowledge that it was Prigozhin's mutiny that caused the problems for the ruble. "The news about the attempted military coup in Russia by the Wagner PMC... has significantly shaken the position of the Russian currency. The ruble is still not feeling too confident, but not because of the news background, but because of low liquidity," notes, for example, one of the Russian news portals.

For example, on the day of the coup, Russian banks sharply raised their exchange rates. They were selling the dollar for more than 90 rubles, asking more than 100 rubles for the euro, and in some exchange offices the rate reached 200 rubles per dollar.

There are no favourable forecasts for Russians yet either. Most Russian analysts predict that the dollar will be at least 86 rubles per dollar in July, or even higher. They believe that the situation can theoretically be improved only by rising oil and gas prices, as well as an additional tax on excess profits, which is being introduced in Russia.

As OBOZREVATEL previously reported, the armed rebellion by the leader of the so-called private military company Wagner, Yevgeny Prigozhin, which did not turn into a full-fledged military coup, nevertheless hit the Kremlin hard. The whole world saw Putin's humiliation and weakness, and this, in turn, revealed new threats.

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