The Russian ruble has become the fastest-growing currency against the dollar since the beginning of the year. This trend is influenced by a combination of factors, including geopolitical developments, interest rates, and shifts in import and export dynamics.

The dollar’s decline has impacted various sectors of the Russian economy, most notably electronics and appliances. Prices for these goods have fallen, with some retailers reporting significant discounts on items such as smartphones and household appliances.

The drop in the dollar exchange rate began in January, reversing a previous surge to over 110 rubles per dollar in December 2024. Now, the Central Bank of the Russian Federation estimates the currency at 78–80 rubles per buck.

Computer equipment market reacted noticeably to such changes. Thus, already in February, when the dollar’s value had just come out of the range of three-digit numbers, foreign suppliers almost instantly dropped prices by 8%. Shops, in turn, were able to reduce the cost of goods for consumers by five thousand rubles. At first, this affected compact electronics, which can be quickly transported.

While the strengthening ruble has benefited consumers and importers, it poses challenges for the Russian budget. A persistently low dollar exchange rate could lead to a decrease in oil and gas revenues, which are a significant source of income for the government.

Experts also note that high interest rates have led consumers to save rather than spend, further impacting demand and prices.

The car market has been less responsive to the currency fluctuations, with prices increasing year to year by 7-10%. A stronger ruble translates to cheaper delivery and registration of cars. The exchange rate accounts for up to 40% of the price tag of a new car.

The cost of goods in supermarkets are also subject to currency fluctuations. Supermarkets say that fruits such as mangoes and apricots now cost less.

Economists attribute the ruble’s strength to factors such as reduced imports, high interest rates, falling oil prices, and increased investment in Russian assets. A leading analyst believes geopolitical detente helps attract investors to Russian banks.