Two months after the Russian ruble fell below the US dollar, the fiat currency of transcontinental countries will become the world’s highest performing currency. Countries facing severe sanctions are usually confused by the “abnormal situation” because the value of fiat currencies is declining, while the Russian ruble is doing the exact opposite. ..
The Russian ruble is above the euro and the dollar — the fiat currencies of transcontinental countries show elasticity
February 28, 2022, Bitcoin.com News report The Russian ruble sank to record a record low, civilians began to withdraw large amounts of cash, causing what many reports called “bank runs.” At that time, Russia was hit by severe economic sanctions from countries opposed to the Ukrainian war. In addition, the United States, the European Commission, and Western allies have imposed restrictions on the Central Bank of Russia’s foreign exchange reserves.
However, in the second week of April 2022, Bitcoin.com News report About the central bank of the country lowering interest rates and fixing the ruble to gold. At that time, the Central Bank of Russia fixed the price of RUB to 5,000 rubles for every gram of gold. Russia also made it so that “unfriendly” nations were forced to pay for gas in the rubles. Many international buyers comply with the rules and pay for petroleum products in the ruble.The central bank of the country Slash The same is true for Russian benchmark bank interest rates.
That week in April, the Russian ruble recovered to prewar levels, and fiat currencies have shown resilience ever since. Recently, Various headings from Western-based media It shows that the Russian ruble is the highest performing fiat currency in the world today. Talking to CBS, Jeffrey Frankel, a professor of capital formation and growth at Harvard Kennedy School remarks “It’s a rare situation” when it comes to the rise of the ruble. The ruble set a record high against the euro and the US dollar in the euro area.
In the same report, Tatiana Orlova, a major emerging market economist at Oxford Economics, said the rise in commodity prices was due to the resilience of the ruble. “Although commodity prices are currently very high and embargoes and sanctions have reduced Russia’s exports, rising commodity prices more than offset these declines,” Orlova explained. Orlova further detailed to CBS that there is a major discrepancy between Russian exports and imports. The Oxford economist added:
There is a coincidence that exports are skyrocketing as imports collapse.
Orlova also discussed capital restrictions enforced by the Central Bank of Russia and how foreign stock and bond holders cannot earn dividends internationally. “This used to be a very important source of currency outflows from Russia. Now the channel is closed,” concluded an Oxford economist.
Meanwhile, in the United States, the Biden administration is suffering from high inflation, and the president is having a hard time discussing the issue. report From New York Times contributors Zolan Kanno-Youngs and Jeanna Smialek.Biden Claim “Today, the United States is in a stronger economic position than any other country in the world.” Biden continues to blame US gas hikes and Russian President Vladimirputin. Call it “Putin price increase”.
What do you think of the performance of the Russian Ruble in 2022? Please tell us what you think about this subject in the comments section below.
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