Russia’s rouble is now worth less than a solitary cent: on August 14th it slipped past the value of 100 to the American dollar. The currency is at its cheapest since the immediate aftermath of the invasion of Ukraine, and has become one of the world’s worst performers this year, outdone only by perennially troublesome peers like the Argentine peso, Venezuelan bolivar and Turkish lira.

By the end of the day, the Bank of Russia had announced it would hold an emergency meeting on August 15th. Officials are expected to raise interest rates. It was the first time policymakers have had to scramble since the early stages of the invasion. Why has the currency collapsed, and what does it mean for Vladimir Putin’s ability to wage war?

[This is one reason why pessimistic predictions about Ukrainian capacity may miss some of the other contexts of this conflict. If the Russian economy collapses, so will Putin’s political support. — Ed]