The Russian Ruble has fallen to about 71 versus the US Dollar in Tuesday's trading. This price index indicates the seven-month low against the greenback. Many try to relate this to the latest western sanctions that have succeeded in weakening the Russian economy.

The latest western sanctions, including the price cap on Russian oil, are weighing on Russia's currency. It is stated that the Ruble has declined by around 12% since the oil price cap was kicked. And with the Ruble getting worse, this also created a panic for Central Banks.

Since Tuesday morning, the Ruble has fallen 2.5% as well and had touched 70.60 versus the dollar. That is the lowest value on the market. But lucky enough to close the market, the Ruble managed to push up to 71 in the bizarre conditions.

The intervention is also said to provide a price cap on Russian crude. The Russians have refused to comply with the price cap, and the threat of retaliation against the country is getting bigger.

Many Claims that Russian Banks Reject Customers' Requests to Withdraw their Money due to the Falling Ruble

Oil and gas are among Russia's key revenue streams, proving that Russia is starting to have trouble fighting European sanctions. Specifically, Russia needs help replacing Europe as a customer. Because the exports show the figure cratered 54% the first week of the oil tire.

Some of Russia's allies can't even help Russia's exports, which have fallen off 11% compared to last month. This then impacts the use of fewer Russian Rubles, which makes the Ruble weak against the US Dollar.

This condition has led many to claim that Russian banks are starting to take special measures to boost the value of their currency. The first step is refusing to allow customers to withdraw their money from the bank.

Online reports say that Vladimir Putin ordered the banks to freeze the money for use in his regime. In the circulating video, you can see many queues of bank customers who are about to withdraw from their bank, but the bank does not allow this request.

There has been no definite statement from the Russian side regarding the outstanding issues. The exchange rate of major currencies in the Russian market shows multi-month highs. 

After the weekend, trading on the stock exchange has also passed two characteristic levels. On December 27, the mark of 71 rubles per dollar is a cause for concern.

 The Central Bank said that the recent weakening of the Russian Ruble could be attributed to the fall of global oil prices. Moreover, because the Ruble is very volatile in the exchange market, it is necessary to recover immediately.

"The disinflationary contribution of the strengthening of the Ruble, which occurred in the 2nd half of spring and summer, has ultimately been exhausted by now," said Aleksey Zabotkin, Deputy chairman of the Central Bank of Russia to the RBK Business Dialy.

Russia Could Hike its Interest Rate in 2023, but Putin Feels that Their Economy is Decent

Putin confidently said that the Russian economy is on the right track. Even in macroeconomic indicators, the Russian economy is said to be much better than many countries of the G20. At the same time, he highlighted the unemployment rate, which was also getting lower.

"The labor market is stable, and that's because of government finances. There are no alarming moments here either," said the president. On the other hand, many are highlighting the central bank's policy of increasing interest rates again shortly.

Russian Central Bank prohibits clients from withdrawing their money at the bank. This is, of course, a condition that gets much attention, as the Ruble is on the decline. It's just that Putin believes many of his citizens that the Russian economy is in fine condition.