ABC News December 16, 2014

There's No Ignoring the Signs of Free-Falling Ruble in Russia

WATCH: Russian Ruble Implodes
By SUSANNA KIM

The Russian ruble's abrupt fall today is part of a year-long drop by more than half the value of the currency.

Back in Dec. 16, 2013, one ruble was worth about 3 cents, according to S&P Capital IQ. In reverse, a dollar was worth about 32.90 rubles back then. Fast forward to today when it fell as much as 20 percent before recovering to 72 for every dollar. With Russian confidence in their economy faltering, the ability to buy things with the ruble becomes more tenuous.

The rampant decline of the ruble is the result of many different variables, according to Lindsey Piegza, Sterne Agee's chief economist, including a fall in oil prices, one of the country's major commodities.

Russian Ruble: This Is Its Free-Fall in One Chart Russian Ruble Slides Again Despite Rate Hike

Here are snapshots of ruble exchange rates with the dollar and euro on the streets of Moscow over the past month:

Nov. 10, 2014: About 45 to a dollar

AFP/Getty Images
Pedestrians walk under a board listing foreign currency rates against the Russian ruble outside an exchange office in central Moscow, Nov. 10, 2014. R

The flood of rubles out of the country, as Russian businesses and consumers try to buy foreign imports that are getting more expensive by the day, has led to a fall in the currency, especially compared to the dollar and euro.

Dec. 1, 2014: About 50 to a dollar

AP
People walk past a display with currency exchange rates in central Moscow, Dec. 1, 2014.

Overnight, the country's central bank raised its benchmark interest rate to try to slow the ruble's slide, hoping Russians would keep their rubles in bank deposits for example, with a higher return on their money.

Dec. 3, 2014: About 53 to a dollar

AP
People walk past a display with various currency exchange rates at Kievskaya (Kiev's) railway station in Moscow, Dec. 3, 2014.

But the plan only worked momentarily.

Dec. 9, 2014: About 54 to a dollar

AP
People walk past a display with currency exchange rates in Moscow, Dec. 9, 2014.

Declining oil prices and several rounds of sanctions that harm investors and businesses are among the drivers of the ruble's fall, Piegza says.

Domestic policy hasn't helped either. The Russian government threatening the seizure of foreign-owned assets is cause for concern and has caused a lack of confidence in the country's ability to rebound, resulting in billions in loans coming due rather than being renewed, Piegza says.

Dec. 12, 2014: About 57 to a dollar

AP
People walk past a sign advertising currency exchange rates in Moscow, Dec. 12, 2014.

"Clearly foreign investors are concerned, in some cases pulling funds out of the troubled nation," she said.

Russia Raises Key Rate to Protect Ailing Economy

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