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Just for fun, I took a look at GBP/USD and it looks like that is tanking as well. Meanwhile the ruble is stronger than it's been in 4 years. For people in the

Just for fun, I took a look at GBP/USD and it looks like that is tanking as well. Meanwhile the ruble is stronger than it's been in 4 years. For people in the EU/UK, how has this currency slide impacted your day to day?

nothis 4y ago
>For people in the EU/UK, how has this currency slide impacted your day to day? Not at all? I mean, I guess you could argue which caused which but the real problem here in central Europe are gas and energy prices. Those legitimately doubled and affect personal budgets.
- sph 4y ago
  Would you be prepared to say that the 18% inflation [1] isn't completely due to GBP getting weaker than USD? Not being facetious, actually asking the question. Because I'm sure all the US-based services will soon be updating their prices to match our rapidly weakening currency. 1: https://www.theguardian.com/business/live/2022/aug/22/cineworld-us-bankruptcy-felixstowe-strike-gas-prices-recession-stock-markets-business-live https://www.theguardian.com/business/live/2022/aug/22/cinewo...
asldjajlfkj 4y ago
Day to day? Not at all. Everything is denoted in EUR anyway and imports are hedged. Oil and gas are expensive, but the strong dollar isn’t the main factor.
devoutsalsa 4y ago
The ruble isn't strong. You can't sell meaningfully sell it on the open market. When you buy it, the price goes up. When you can't sell it, the price stays up. https://www.cbsnews.com/news/russia-ukraine-ruble-currency-russian-economy-sanctioms-2022/ https://www.cbsnews.com/news/russia-ukraine-ruble-currency-r...
- waffleiron 4y ago
  > When you buy it, the price goes up. When you can't sell it, the price stays up. How could you buy it, if it can't be sold? Also that article is from June, a lot has changed since then.
  - emaginniss 4y ago
    USD to RUB Average Daily Volume Traded 100 Days: 514 Average Daily Volume Traded 200 Days: 24602 You can buy it from Russia, but you can't sell it to Russia. That is how you can buy but not sell.
    - waffleiron 4y ago
      But why would one buy it from Russia instead of buying it from someone trying to sell it that can't sell it to Russia? I don't understand how Russia could prevent me from selling the RUB to anyone else? If people are buying from Russia they would like to buy it for cheaper from me, no? What am I missing here?
      - rrrrrrrrrrrryan 4y ago
        When you want to buy oil from Russia, Russia forces you to perform the transaction with Rubles. Which means you have to buy Rubles from Russia in order to buy oil. I don't think there's a big pile of Rubles outside of Russia. If I had Rubles I would've offloaded them many months ago because there's a chance they could be completely worthless in the medium-term.
    - ehvatum 4y ago
      You can sell rubles to Russia for oil.
mellavora 4y ago
Two responses saying "oil and gas are more expensive, but that is other causes"... forgetting that oil and gas are priced in dollars. So the exchange rate is certainly a cause (i.e. 20-30% of recent moves), though agree not the main cause (recent moves are > 100%, mostly due to Russia tightening the pipe).
- asldjajlfkj 4y ago
  For totally fungible assets (e.g. stocks) that’s true. Not so much for gas, where it is sold and bought with a regional restriction. Exchange rates are transparent to the market situation.
legulere 4y ago
The ruble is so strong because russia cannot spend money anymore because of sanctions. I'm living in Germany, the biggest problem is the inflation caused by energy prices. It's still lower than in the US or the UK, but people are starting to struggle. Business is going well as Germany is mostly export-driven, but companies don't want to give out rises.
- adammarples 4y ago
  The rouble is strong because the Russian state is burning through its foreign reserves to backstop it.
  - JumpCrisscross 4y ago
    > the Russian state is burning through its foreign reserves to backstop it Half of Russia’s reserves are sanctioned. They’re earning bumper returns on their energy exports, mainly oil, despite the ~20% discount they’re forced to offer. And they’ve been seizing exporters’ hard currency. They say they’re down 10% (20% sanctions adjusted) from February [1]. That’s a decrease, but it’s not burning. (Obvious disclaimer: they’re probably lying.) [1] https://tradingeconomics.com/russia/foreign-exchange-reserves https://tradingeconomics.com/russia/foreign-exchange-reserve...
    - spywaregorilla 4y ago
      > They say they’re down 10% (20% sanctions adjusted) from February [1]. That’s a decrease, but it’s not burning. (Obvious disclaimer: they’re probably lying.) That sounds like burning to me, even at the improbable 10% level.
      - JumpCrisscross 4y ago
        > sounds like burning to me, even at the improbable 10% level Fair enough. It’s a steeper drop than I expected before looking it up.
    - deleted 4y ago
      [deleted]
alecco 4y ago
Rents and general cost of living keeps rising.
- GordonS 4y ago
  Also seems like there are more strikes or strike ballots happening every week.
iSnow 4y ago
Didn't impact me at all. Inflation does but since I earn above-average, not to a painful degree. I don't have plans to go on holiday to the USA in the next year or so, don't plan to buy a Tesla, maybe a new Mac which is going to go up in EUR. I worry about the long-term effects the war will have for us. Europe is resource poor and constantly rising energy prices will hit our industry hard as we cannot easily find domestic sources of energy. I do hope that switching to renewables gets accelerated and will provide us with both cheap energy and new opportunities for industry.
- MomoXenosaga 4y ago
  Europe is not resource poor. It was just easier to let Russia and China deal with the environmental costs. Literally nobody gives a shit if a pipeline in Syberia starts leaking.

nothis 4y ago

>For people in the EU/UK, how has this currency slide impacted your day to day? Not at all? I mean, I guess you could argue which caused which but the real problem here in central Europe are gas and energy prices. Those legitimately doubled and affect personal budgets.

sph 4y ago
Would you be prepared to say that the 18% inflation [1] isn't completely due to GBP getting weaker than USD? Not being facetious, actually asking the question. Because I'm sure all the US-based services will soon be updating their prices to match our rapidly weakening currency. 1: https://www.theguardian.com/business/live/2022/aug/22/cineworld-us-bankruptcy-felixstowe-strike-gas-prices-recession-stock-markets-business-live https://www.theguardian.com/business/live/2022/aug/22/cinewo...

asldjajlfkj 4y ago

Day to day? Not at all. Everything is denoted in EUR anyway and imports are hedged. Oil and gas are expensive, but the strong dollar isn’t the main factor.

devoutsalsa 4y ago

The ruble isn't strong. You can't sell meaningfully sell it on the open market. When you buy it, the price goes up. When you can't sell it, the price stays up. https://www.cbsnews.com/news/russia-ukraine-ruble-currency-russian-economy-sanctioms-2022/ https://www.cbsnews.com/news/russia-ukraine-ruble-currency-r...

waffleiron 4y ago
> When you buy it, the price goes up. When you can't sell it, the price stays up. How could you buy it, if it can't be sold? Also that article is from June, a lot has changed since then.
- emaginniss 4y ago
  USD to RUB Average Daily Volume Traded 100 Days: 514 Average Daily Volume Traded 200 Days: 24602 You can buy it from Russia, but you can't sell it to Russia. That is how you can buy but not sell.
  - waffleiron 4y ago
    But why would one buy it from Russia instead of buying it from someone trying to sell it that can't sell it to Russia? I don't understand how Russia could prevent me from selling the RUB to anyone else? If people are buying from Russia they would like to buy it for cheaper from me, no? What am I missing here?
    - rrrrrrrrrrrryan 4y ago
      When you want to buy oil from Russia, Russia forces you to perform the transaction with Rubles. Which means you have to buy Rubles from Russia in order to buy oil. I don't think there's a big pile of Rubles outside of Russia. If I had Rubles I would've offloaded them many months ago because there's a chance they could be completely worthless in the medium-term.
  - ehvatum 4y ago
    You can sell rubles to Russia for oil.

mellavora 4y ago

Two responses saying "oil and gas are more expensive, but that is other causes"... forgetting that oil and gas are priced in dollars. So the exchange rate is certainly a cause (i.e. 20-30% of recent moves), though agree not the main cause (recent moves are > 100%, mostly due to Russia tightening the pipe).

asldjajlfkj 4y ago
For totally fungible assets (e.g. stocks) that’s true. Not so much for gas, where it is sold and bought with a regional restriction. Exchange rates are transparent to the market situation.

legulere 4y ago

The ruble is so strong because russia cannot spend money anymore because of sanctions. I'm living in Germany, the biggest problem is the inflation caused by energy prices. It's still lower than in the US or the UK, but people are starting to struggle. Business is going well as Germany is mostly export-driven, but companies don't want to give out rises.

adammarples 4y ago
The rouble is strong because the Russian state is burning through its foreign reserves to backstop it.
- JumpCrisscross 4y ago
  > the Russian state is burning through its foreign reserves to backstop it Half of Russia’s reserves are sanctioned. They’re earning bumper returns on their energy exports, mainly oil, despite the ~20% discount they’re forced to offer. And they’ve been seizing exporters’ hard currency. They say they’re down 10% (20% sanctions adjusted) from February [1]. That’s a decrease, but it’s not burning. (Obvious disclaimer: they’re probably lying.) [1] https://tradingeconomics.com/russia/foreign-exchange-reserves https://tradingeconomics.com/russia/foreign-exchange-reserve...
  - spywaregorilla 4y ago
    > They say they’re down 10% (20% sanctions adjusted) from February [1]. That’s a decrease, but it’s not burning. (Obvious disclaimer: they’re probably lying.) That sounds like burning to me, even at the improbable 10% level.
    - JumpCrisscross 4y ago
      > sounds like burning to me, even at the improbable 10% level Fair enough. It’s a steeper drop than I expected before looking it up.
  - deleted 4y ago
    [deleted]

alecco 4y ago

Rents and general cost of living keeps rising.

GordonS 4y ago
Also seems like there are more strikes or strike ballots happening every week.

iSnow 4y ago

Didn't impact me at all. Inflation does but since I earn above-average, not to a painful degree. I don't have plans to go on holiday to the USA in the next year or so, don't plan to buy a Tesla, maybe a new Mac which is going to go up in EUR. I worry about the long-term effects the war will have for us. Europe is resource poor and constantly rising energy prices will hit our industry hard as we cannot easily find domestic sources of energy. I do hope that switching to renewables gets accelerated and will provide us with both cheap energy and new opportunities for industry.

MomoXenosaga 4y ago
Europe is not resource poor. It was just easier to let Russia and China deal with the environmental costs. Literally nobody gives a shit if a pipeline in Syberia starts leaking.