Why a weak Ruble is good for Russia's budget but not Putin's image

The Indicator from Planet Money

NPR

Business

4.7 • 9.2K Ratings

🗓️ 24 August 2023

⏱️ 10 minutes

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Summary

Russia's Ruble is hovering around its lowest value against the dollar since June 2022. A weak currency is already a big deal for ordinary people affected by inflation, but in Russia, the concern is only amplified because of the Ruble's unique history in Russia. Today, we dive deep into Russia's historical connection to the Ruble and why a weak Ruble puts Russia in a difficult position today.

Related Episodes: The artificial strength of the Russian ruble (Apple Podcasts / Spotify)

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Transcript

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0:00.0	This is the indicator from Planet Money, I'm Patty Hirsch.
0:15.0	And I'm Whalen Wong.
0:16.0	A Russian rubble today is worth about one cent, that's the lowest value it's had against
0:21.2	the dollar since March of 2022.
0:23.2	And this is a big deal for the Russian people, right?
0:25.7	That means the cost of goods is rising and contributing to overall inflation.
0:29.4	It's also a big deal for the Russian government in the central bank because it makes observers
0:33.6	think they aren't really capable of controlling their currency.
0:36.6	But it's a really big deal for Russia's president Vladimir Putin.
0:42.5	Russia has a unique relationship with the rubble.
0:45.4	Its national identity and the power of its leaders is tied up with the currency's valuation
0:50.1	in a way that no other country is.
0:53.1	And why the entire machinery of the Russian state swung behind the rubble when it collapsed
0:57.6	in value after the invasion of Ukraine in early 2022, that briefly made the rubble the best
1:02.8	performing currency in the world.
1:04.8	So in today's show we'll take a look at the rubble and its special place in the hearts
1:08.4	of its people and the minds of its leaders, and why it took so long for the Kremlin to
1:13.1	voice its concern about the rubble's recent decline, that's coming up after the break.
1:21.3	This message comes from an PR sponsor, Betterment.
1:24.2	The drama of having an enemy turned lover is never chill.
1:28.1	But your investing portfolio should be.
1:30.9	Betterment is the investing app that lets you be totally chill about your finances.
	...

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