The ruble is falling. Like fast. Like steep…extremely fast. Yup, it’s pretty much off the radar. And it is having an effect.
President Vladimir Putin may control the levers of power in Russia, but there’s one thing he hasn’t been able to control: the relentless slide of the ruble.
The currency is down about 20 percent against the dollar since January and is now at its lowest level since Russia’s 1998 debt default. Its performance this year is the worst of any major currency except Argentina’s peso.
Why should we be concerned about the slide of the ruble?
Sales of imported consumer goods such as laptop computers have collapsed, and Russians are holding off on buying cars and other big-ticket items.
A downturn in world economy has an impact on everyone. If we are not allowing for such impact, figuring it into everything we are doing, then we are going to be taken by surprise when the trickle down economic effect touches our own businesses. So don’t be surprised, but plan in advance.
