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To: blitz128

“Since the ruble is not traded worldwide to any great extent, what does the ruble to dollar comparison actual mean?”

When Russians do have to buy something from the West, it costs them more rubles, and when they sell something, they get less rubles.

I cited the dollar because it is a familiar benchmark, but the ruble is declining against most major currencies - euros, yen, yuan, rupees, dirham, etc..

Russians have to pay more for everything they buy abroad (they can afford less), and they are making less on what they sell.

In addition to their weakening currency, financial transaction costs are through the roof for Russians now. In just a few months, Russian import/export companies have likely seen their profit margins slashed or eliminated; and/or have had to pass on double digit price rises to their customers.

We are talking about a 20-25% total change in one quarter. If that was happening here, we would be freaking out.


6,876 posted on 10/03/2024 10:17:27 AM PDT by BeauBo
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To: BeauBo

And as I understand it Russian companies pay taxes in gross not net, a double kick in the groin


6,886 posted on 10/03/2024 12:50:58 PM PDT by blitz128
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