Don’t worry. As noted previously, the complexity of tracking exchange rates isn’t a significant part of International Business (GEB3373) for converged communicators. But it’s still useful to understand some of the effects involved in the global currency exchange system. When instability threatens – and the current Russia/Ukraine conflict is about as unstable as it gets – currency values can take a nosedive.
As noted by the BBC, Russia’s currency, the ruble or rouble, has plunged in value since the outset of the Ukrainian turmoil. The currency’s value has fallen sharply in comparison to the dollar and the euro. That’s not the only economic shock involved for Russia, where the stock market has dropped 9 percent in today’s trading and the central bank has increased its main lending rate by 1.5 percentage points.