Mention two reasons which led to the depreciation of Russian money?
Answers
Answer:
The major reason which led to the depreciation of Russian money was Discrimination as well as variance in currency.
Explanation:
In 1991 there was decline in oil price. The currency of Russia is Ruble. Economic crisis happened in Russia due to the decline of prices in gold and gas. After this event many Russian investors sold their assets in low price. This caused many struggles in Russian economy. It became an economical sensation in Russia.
Explanation:
The downfall of Rubel was the decline of global oil prices, which led to the downfall of the currency in Russia. Other reasons for the downfall were the changes in the gold and gas prices, development of the USD exchange rate. There is a close relationship between the prices of gold, stock market, exchange rate, and interest rate which affects the overall status of the currency and since it changed, this eventually impacted Russia’s currency