1/14/2024 0 Comments Russia ruble to usdSecond, it seems like the policies that pushed the Russian ruble upwards are now working against it. First, Russia’s economy remains under pressure, with the International Monetary Fund (IMF) expecting it to shrink by more than 5% this year. This reversal is based on several factors. It seems like they were right considering that the USD/RUB pair has jumped by more than 50% from the lowest point in 2022. Several analysts welcomed the stronger Russian ruble and warned that it would be temporary. Similarly, the country benefited from the soaring oil prices. Jumped to a record high as the country reduced the amount of flows sent to Europe. This, in turn, led to more demand for the Russian ruble.įinally, and most importantly, Russia benefited from the relatively elevated oil and gas prices. The idea was to ensure that countries first converted their currencies to ruble before making the payments. Ordered unfriendly countries like those in the European Union to make gas payments in the Russian ruble. It softened these controls in May in a bid to boost the economy. As a result, it became increasingly impossible or difficult for individuals and companies in Russia to move their funds to safer places like Switzerland. Second, the central bank initiated strong capital controls that limited the amount of money leaving the country. It pushed interest rates to 20% in a bid to encourage ruble investments. First, the central bank swung into action after western governments announced their sanctions. The USD/RUB plunged after Russia’s invasion of Ukraine for several reasons. It also became a pride of Moscow, which used it to demonstrate that western sanctions were backfiring. This 67% surge made the ruble one of the best-performing currencies in the world. After initially soaring to a record high of 154, theĮxchange rate plunged to a low of 50.77. The Russian ruble has had a rough ride since the invasion of Ukraine started in 2022.
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