Скачать или смотреть What is currency depreciation? | Understanding depreciation of the Rubble caused by the Sanctions

The sanctions levied by the west caused the Russian Rubble to depreciate by amonst 50%.

But what is depreciation and why did the Rubble depreciate in comparison to the USD?

Depreciation means the fall in the value of the domestic currency, in this case ruble in comparison to the forign currency, in this case dollars.

Before the Invasion, 1 dollar was equal to 78 Rubbles which in a span of 2 weeks now equals to 139 Rubble.

This happened on 2 accounts, one, due to the Increase in Supply of Ruble, as people started to sell ruble to buy dollars to pull out investments from Russia and second because of a fall in demand for rubble, shifting the demand curve to the left. This happened as the rating agencies downgraded Russias Soverin rating along with the sanctions which stopped money poring into Russia.

If the ruble collapses further, it could usher in severe inflation and aggrevate a brewing recession

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