Bloomberg: Rapid Ruble Growth Will Hit Russia's Military Economy

In 2025, the Russian ruble outperformed all major currencies against the dollar.

Russia's currency, the ruble, will outperform all major currencies against the dollar in 2025 - which caught the Kremlin and Putin regime officials off guard and threatens to hit Russia's war economy.

This is according to Bloomberg.

"The ruble has strengthened 45% since the start of 2025 and is trading at about 78 per $1, very close to levels seen before Russia's full-scale invasion of Ukraine in 2022. According to official data, the ruble has strengthened more over the past 12 months than at any time since 1994," the journalists wrote.

The key factor behind the Russian currency's rise was a sharp drop in demand for foreign currency in Russia amid international sanctions, while exceptionally tight monetary policy has made ruble assets more attractive to residents, the agency said.

"The central bank's key rate remained at a record high from October last year through June, after which policymakers cut it by a combined 5 percent The Central Bank of the Russian Federation, in turn, predicts a slowdown in the country's economic growth in 2025 - to 0.5-1% (in 2024 this figure was 4.3%).

According to researchers from the Stolypin Institute of Growth Economics, the overvalued ruble undermines competitiveness - and at the same time the Russian Federation is actually "losing its natural advantages as an energy power, offering foreign consumers more favorable conditions than domestic producers, and worsening the country's investment attractiveness," summarized in Bloomberg.

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