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What is devaluation in simple terms and how does it affect the Russian economy?
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How does devaluation affect the Russian economy?
Rising import prices: When the ruble loses its value, imported goods become more expensive. This means that Russians spend more on foreign-made goods, such as cars, electronics, medicines, and even some food products.
Higher cost of living for citizens: Devaluation leads to higher prices for goods and services, which increases inflation. As a result, the purchasing power of Russians decreases, and life becomes more expensive.
Benefits for exporters: Companies that sell their goods and services abroad receive income in foreign currency....
Ruble Concludes 2024 Above 100 Against Dollar: Causes, Forecasts, and Implications
... dollar and strengthening below the 100 ruble mark in the event of improved economic and geopolitical conditions.
Implications for the Economy and Population
Inflation
The depreciation of the ruble increases the cost of imported goods, leading to rising prices. This is particularly evident in food, household appliances, and pharmaceuticals.
Household Incomes
The real purchasing power of citizens is decreasing. This is particularly felt by those whose income is pegged to the ruble while expenses are tied to foreign currencies.
Business
Companies ...
Investments with Good Returns and Low Risk: Where to Invest Your Money
... and internet service providers.
Such firms are largely insulated from bankruptcy risks and exhibit good profitability due to consistent demand for these types of goods. Regardless of the economic climate, people will always spend on essentials like food, hygiene products, and medicine. These are typically their first expenditures.
Also, this category sometimes includes shares in companies that mine precious metals, as the demand for gold tends to rise during crises, thereby increasing the share prices of these businesses.
Securities in this category lose value very slowly, and the same can be said for their price appreciation. Sudden fluctuations are rare. The volatility of these stocks is minimal compared to market averages, making them very ...
Diversification of Risks when Investing in Securities
... securities, ensuring that the companies are from different industrial sectors. These may include stocks from metallurgical plants, food production companies, logistics organizations, financial institutions, and more. The key is that they must not respond identically ... ... influencing the stocks. It is unlikely that a crisis in one country would adversely impact the industry in another. Even if the prices of some stocks decline, others will likely gain value. This can help offset losses and provide profits.
When choosing securities,...
Forbes: "Oil Resource Group": A New Level of Buying and Selling Petroleum Products
... independent companies. By reducing the number of intermediaries, these companies will be able to sell their products for a higher price, and buyers will pay less. Plus, they will have diversified customer flows, not just large traders. If negotiations are ... ... app. It allows you to buy gasoline, diesel, liquefied gas, etc., through your smartphone – as easily as ordering a taxi or food delivery. The "Fuel" app was integrated into the business processes of "Oil Resource Group." At the same ...