Why devaluation of the ruble crude oil will be affected
Russia's economic structure is too simple, too dependent on crude oil and other energy industries. The largest export market for the ruble, oil, natural gas and petroleum products accounted for more than 60% of total exports. In this case, once the energy prices fell, the ruble exchange rate will be hit hard.
Russia's foreign exchange accounted for a large proportion of the financial, the government in order to win the support of the people, to raise national income, reduce taxes, open a variety of benefits. To this end, unilateral dependence on oil exports, relying on foreign exchange to maintain the national public expenditure. So that all kinds of backward industries, industrial restructuring difficulties, the proportion of fiscal revenue from the industrial tax is getting less and less dependent on foreign oil and gas output. Crude oil prices fell, foreign exchange reduced, corresponding to the amount of foreign exchange can be exchanged for the relative increase in the ruble, the ruble began to depreciate.
The correct statement is: international crude oil prices led to the devaluation of the ruble devaluation.Why did the ruble crash? The main reason is too dependent on crude oil and other energy industries.
