Recent news reports have detailed that Russia’s fiat currency, the ruble, was the best-performing currency worldwide and the articles explained that American economists were perplexed by the trend. On Monday, the Russian ruble rose to 55.47 per dollar, which was the highest increase since 2015. While many have dismissed the ruble’s exchange rate, Charles Lichfield, the Atlantic Council’s Geoeconomics Center deputy director, published an editorial called: “Don’t ignore the exchange rate: How a strong ruble can shield Russia.”
New Delhi: India is importing crude oil from Russia & re-exporting it at much higher prices to US, France, Italy & UK. – CREA report shows.
The inconvenient truth those citing Russia’s GDP size fail to grasp:
Government officials predicted that the energy sanctions could backfire and may not necessarily work. During an interview in May, the European Union Commission president Ursula Von Der Leyen described how the energy sanctions could backfire. Von Der Leyen said that if countries “immediately” sanctioned Russian oil imports, Vladimir Putin “would be able to take the oil that he does not sell to the European Union to the world market, where the prices will increase, and [he will] sell it for more.”
What do you think about the Russian ruble’s market performance and the theories on why it is doing so well? Do you think the Russian ruble is being propped up by the country’s officials or do you think the fiat currency is strong? Let us know what you think about this subject in the comments section below.