Over the last couple of days, the rouble has plunged. As you can see in the chart below, the rouble fell sharply after Russia's invasion of Ukraine. The Bank of Russia imposed strict exchange controls, and the currency rallied almost as sharply as it fell. Part of the recent decline is due to the West's price cap on Russian oil. Part must be due to the obvious evidence that the world economy is slowing, and taking commodity prices with it. The fall in the rouble will add to inflation in Russia and worsen Putin's political position. But what new levers can the Bank of Russia pull to push the rouble up again?
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