10:12 GMT31 October 2020
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    In what should be no surprise, Russian consumers have been snatching up iPhones and other electronic goods amid the ongoing slump in the ruble, according to Bloomberg Business.

    Shoppers have been trying to purchase these high priced imported goods before their prices are readjusted to match the current value of the ruble to the dollar, which last week hit record lows of 85.

    "We are facing a shortage of the simplest iPhone 6 model because of outperforming demand for it this month, especially in last two days when the ruble plunge gave an additional boost to sales," said Maria Zaikina, a spokeswoman for Svyaznoy retailer, as reported by Bloomberg.

    As the ruble becomes weaker, the relative price of imported goods in dollars goes down. In the past month, the ruble has declined 11% from 70 to 78, hitting lows of 85 on January 21.

    The ongoing slump in the Russian ruble is directly attributable to the slump in oil prices, with energy representing more than 70% of its GDP. As the price of oil falls, which is denominated in dollars, so too does the amount of revenue pulled in by energy companies and the government. In order to meet current expenditure requirements, set in rubles, the currency must be devalued, however the by product of this is that imported goods such as the iPhone become more expensive in ruble terms.

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    Tags:
    currency exchange rate, import, ruble, iPhone, Russia
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