Russia's ruble has tumbled. What does it mean for the wartime economy?

economictimes.indiatimes.com:

Russia's ruble has fallen a long way in recent months, and the country's central bank has stepped in to try to halt the slide. Until now, the government stood aside as the declining ruble helped its budget. But a weaker currency also poses the threat of higher prices for everyday people in Russia — and the government has finally moved to halt the drop.

Here are key things to know about the ruble:WHY IS THE RUBLE FALLING? Economic fundamentals play a role, though they aren't the whole story. Russia is selling less abroad — mainly reflected in falling revenue from oil and natural gas — and it's importing more. When goods are imported to Russia, people or companies have to sell rubles for foreign currency such as dollars or euros.

That tends to lower the ruble's exchange rate. Russia's trade surplus — meaning it sells more goods to other countries than what it buys — has shrunk. Trade surpluses typically support a country's currency.

Previously, Russia saw a large trade surplus because of high oil prices and plummeting imports after Russia invaded Ukraine. But oil prices have dipped this year, and it's more cumbersome for Russia to sell its oil due to Western sanctions, including price caps on crude and oil products like diesel. «Significantly lower inflows of foreign currency due to the drop in exports are the key driver» of the ruble's decline, according to the Kyiv School of Economics Institute.

Meanwhile, imports have started to recover after nearly a year and a half of war as Russians find ways around sanctions. Some trade has been rerouted to Asian countries that are not participating in sanctions. And importers have found ways to ship goods through nearby countries such as Armenia, Georgia and Kazakhstan.