Russian Ruble Surpasses Brazil’s Real as Year’s Best-Performing Currency

[buwaytress]

The import of cash dollars and euros into Russia was banned by Western sanctions, it seems, as early as the beginning of March. But even if you buy cash dollars and euros, the question is why?

Er, why? Even before I went to Europe, dollars and euros and even pound sterling, are more readily accepted in my corner of the world.

I have visited several non-EU, former USSR members in the past few years... and the only "Russian" thing they'll accept there is the language and the script. I did see an app accepting ruble in Kazakhstan though but that was for the Russians to use their card to pay. Russians there changed rubles at moneychangers. These places are way cheaper than Europe, including Ukraine.

First time I've heard Turkey accepting rubles... you're talking merchants and shop owners or? Any of these guys have an online shop accepting ruble?

[1714865439]

1714865439

[be.open]

The import of cash dollars and euros into Russia was banned by Western sanctions, it seems, as early as the beginning of March. But even if you buy cash dollars and euros, the question is why?

Er, why? Even before I went to Europe, dollars and euros and even pound sterling, are more readily accepted in my corner of the world.

I have visited several non-EU, former USSR members in the past few years... and the only "Russian" thing they'll accept there is the language and the script. I did see an app accepting ruble in Kazakhstan though but that was for the Russians to use their card to pay. Russians there changed rubles at moneychangers. These places are way cheaper than Europe, including Ukraine.

First time I've heard Turkey accepting rubles... you're talking merchants and shop owners or? Any of these guys have an online shop accepting ruble?

Now there is a very large surge of Russophobia in Europe, and the European Union may not expect Russian tourists this season. And this is the main purpose for buying cash euros, now it is gone. For the dollar, the forecast is more favorable, for historical reasons, Russians love cash dollars. However, keeping savings in cash dollars is now stupid because of high inflation, and Russians now have nowhere to spend them.

[DrBeer]

So, from May 20, the Central Bank of Russia removed all restrictions on the purchase by citizens of foreign currency in cash, except for dollars and euros. For dollars and euros, there are restrictions related to US and EU sanctions on the import of cash into Russia - you can buy cash dollars and euros that were deposited at bank cash desks after April 9, 2022. I hope now I have clarified the situation and eliminated the contradictions that existed in your consciousness, but not in reality.

"This is not true, the Central Bank of Russia does not prohibit the sale or purchase of dollars and euros, currently there are no such restrictions in Russia. Restrictions on the import of cash currency exist on the part of the United States and the European Union.
What you are right about is that the dollar and the euro are now considered a scam in Russia." - Do not fill, whose words are these?

Yeah, i.e. dollar and euro are fake currencies. And without them, Russians live happily with a non-fake ruble (  ) But they decided to work and trade with fake currencies, since everyone needs them?! You have excellent logic and the most objective information, and what is very important - absolutely not contradictory

[stompix]

What you are right about is that the dollar and the euro are now considered a scam in Russia.

For the dollar, the forecast is more favorable, for historical reasons, Russians love cash dollars.

Yeah right, every day changing the scenario, it's banned because they don't like it, it's banned because they like it too much, it is banned because they don't have euros and dollars, let's go on a different topic and Russia swims in euros and dollars because of oil exports, changing the narrative as the propaganda requires.

The mess the CB has done trying to prop the currency, create a bulletproof capital control and restrict money flow has led to some hilarious situations that remind us of the start of the Venezuelan crisis, probing the ruble artificially too much leads the merchants to demand the equivalent price in the actual exchange rate, not the one authorities claims so you end up with imported goods, despite being from outside western Europe being the most expensive in the worlds:
https://newsfounded.com/russia/today-russia-has-the-most-expensive-car-in-the-world-list-of-evidence-autonews/

Nissan Qashqai
Price in Russia: 39,697 euros
Price in Germany: € 24,831
Price in US: $ 24,760 (€ 23,077)

This is because well, nobody gives a damn about the fake rate, and every merchant puts the price at the real rate they would get euros for rubles, this is a somewhat twisted version of the PPP indicator but with these prices, you can actually calculate the real rate of the ruble.

Er, why? Even before I went to Europe, dollars and euros and even pound sterling, are more readily accepted in my corner of the world.

Usually, the more hated the US is in one country the more liked the dollar is, as a European it's a real slap on the face going to a completely non us friendly country and seeing everyone accepting dollars but not euros and the hotel owner telling you how they love Europe...

[DrBeer]

What you are right about is that the dollar and the euro are now considered a scam in Russia.

For the dollar, the forecast is more favorable, for historical reasons, Russians love cash dollars.

Yeah right, every day changing the scenario, it's banned because they don't like it, it's banned because they like it too much, it is banned because they don't have euros and dollars, let's go on a different topic and Russia swims in euros and dollars because of oil exports, changing the narrative as the propaganda requires.

The mess the CB has done trying to prop the currency, create a bulletproof capital control and restrict money flow has led to some hilarious situations that remind us of the start of the Venezuelan crisis, probing the ruble artificially too much leads the merchants to demand the equivalent price in the actual exchange rate, not the one authorities claims so you end up with imported goods, despite being from outside western Europe being the most expensive in the worlds:
https://newsfounded.com/russia/today-russia-has-the-most-expensive-car-in-the-world-list-of-evidence-autonews/

Nissan Qashqai
Price in Russia: 39,697 euros
Price in Germany: € 24,831
Price in US: $ 24,760 (€ 23,077)

This is because well, nobody gives a damn about the fake rate, and every merchant puts the price at the real rate they would get euros for rubles, this is a somewhat twisted version of the PPP indicator but with these prices, you can actually calculate the real rate of the ruble.

Er, why? Even before I went to Europe, dollars and euros and even pound sterling, are more readily accepted in my corner of the world.

Usually, the more hated the US is in one country the more liked the dollar is, as a European it's a real slap on the face going to a completely non us friendly country and seeing everyone accepting dollars but not euros and the hotel owner telling you how they love Europe...

It was always funny to watch the Western haters who, with great joy, stuffed “unsecured dollars” and “fake euros” into their pockets. Moreover, in 99% of cases, they were stored in those very Western banks, and there, for a calm and comfortable life, all these Western-haters bought real estate, businesses, taught children there ... But they always told their people how bad it is to live there, what it is degradation, and other sins at every turn! But as soon as they begin to take away their illegally acquired property, or expel their children or wives to the "holy homeland", such squeals and hysterics begin, resentment that he was deprived of the opportunity to live "in the most sinful west"!

[be.open]

It was always funny to watch the Western haters who, with great joy, stuffed “unsecured dollars” and “fake euros” into their pockets. Moreover, in 99% of cases, they were stored in those very Western banks, and there, for a calm and comfortable life, all these Western-haters bought real estate, businesses, taught children there ... But they always told their people how bad it is to live there, what it is degradation, and other sins at every turn! But as soon as they begin to take away their illegally acquired property, or expel their children or wives to the "holy homeland", such squeals and hysterics begin, resentment that he was deprived of the opportunity to live "in the most sinful west"!

This is the huge positive effect of Western sanctions on Russia, which alone outweighs the many negative side effects. Paradoxically, sanctions hit hardest of all not ordinary Russians, but oligarchs, fifth-column liberals, and the duplicitous hypocrites you speak of.

[DrBeer]

It was always funny to watch the Western haters who, with great joy, stuffed “unsecured dollars” and “fake euros” into their pockets. Moreover, in 99% of cases, they were stored in those very Western banks, and there, for a calm and comfortable life, all these Western-haters bought real estate, businesses, taught children there ... But they always told their people how bad it is to live there, what it is degradation, and other sins at every turn! But as soon as they begin to take away their illegally acquired property, or expel their children or wives to the "holy homeland", such squeals and hysterics begin, resentment that he was deprived of the opportunity to live "in the most sinful west"!

This is the huge positive effect of Western sanctions on Russia, which alone outweighs the many negative side effects. Paradoxically, sanctions hit hardest of all not ordinary Russians, but oligarchs, fifth-column liberals, and the duplicitous hypocrites you speak of.

 

And tell me, do you seriously think that by repeating propaganda slogans, denying the real picture of global changes, everything will be fine in your country? No, it will not ! There is an ancient saying - no matter how much you say halva, it will not become sweet in your mouth. So are you, cyclically repeating propaganda slogans, I hope that you will not be touched by the total problems approaching Russia. But I’ll give you credit, at least you don’t just copy-paste “from manuals”, you translate these slogans into your own words, and even dilute them with additional information. True, from the same propaganda sources, but believe me, against the background of 99% of primitive repeaters of the "spells" of Putin's nonsense, you look much better! Yes, and thank you - each of your answers (unless, of course, you pretend that you didn’t notice the question for which there are no blanks in the training manuals), this is a reason to smile, I really like it, it’s very cool

Speaking of sanctions, let me once again remind you of the question - if everything is so fine, why in Russia, at every opportunity, are they trying to persuade the West to lift sanctions? A conspiracy of the Kremlin's enemies of Russia?
And another question - since everything is so beautiful, what are the reasons for these two facts:
- the recently adopted law, which allows Putin to single-handedly manage the deposits of the population, at his own discretion, including freezing "and other measures." What does the seizure "for the good of the motherland" mean, though it is not openly spoken about, but other measures are hidden behind the phrase ""? By the way, do you have savings that are in banks?
- 80% of Russians started saving in the spring of 2022. Most of the respondents said that they are trying to save on everything (44%), some even on food, follows from a survey by the Zarplata.ru service. The main reason for savings 61% of respondents named the increase in prices. But you obviously don’t fall into these 80% of losers, did I guess correctly?

[be.open]

And tell me, do you seriously think that by repeating propaganda slogans, denying the real picture of global changes, everything will be fine in your country? No, it will not ! There is an ancient saying - no matter how much you say halva, it will not become sweet in your mouth. So are you, cyclically repeating propaganda slogans, I hope that you will not be touched by the total problems approaching Russia. But I’ll give you credit, at least you don’t just copy-paste “from manuals”, you translate these slogans into your own words, and even dilute them with additional information. True, from the same propaganda sources, but believe me, against the background of 99% of primitive repeaters of the "spells" of Putin's nonsense, you look much better! Yes, and thank you - each of your answers (unless, of course, you pretend that you didn’t notice the question for which there are no blanks in the training manuals), this is a reason to smile, I really like it, it’s very cool

I seriously think that everything is fine in Russia even now. You can always do something better, but this is not a reason to indiscriminately deny existing achievements. Thanks for the kind words.

Speaking of sanctions, let me once again remind you of the question - if everything is so fine, why in Russia, at every opportunity, are they trying to persuade the West to lift sanctions? A conspiracy of the Kremlin's enemies of Russia?

The world has been inspired by the ideas of globalization for quite a long time, and as a result, the world economy turned out to be saturated with interdependencies, many of which are hidden and not obvious, and their influence is fully manifested only at the moment of rupture of ties. In general, Russia is doing well, with little debt, a chronic budget surplus, food security, an abundance of energy resources and a colossal surplus of raw materials - all this allows us to look to the future with confidence. The West underestimated the influence of Russia on the world economy, if you look at the extractive industries and subtract all sorts of inedible futures and services, you will get Russia's share in the world economy not 1.5%, but at least 6.5% (or even all 10%). And if Western sanctions threaten Russia with the speed of sustainable development, they put the West itself on the brink of existence. I will illustrate the idea with a fresh example. The other day, Canada refused to return a Siemens turbine to Gazprom from repair due to sanctions, and Gazprom had to reduce gas transmission through Nord Stream by two thirds, which caused the price of gas to rise by 25%. It turns out that the sanctions were imposed against Russia, and it is Europe that suffers from them first of all. Moreover, the United States introduces sanctions against Russia very selectively and often cancels it if it becomes unprofitable for it. I think that Biden and Putin agreed during the meeting last year how to divide Europe. Europe in this story is definitely a trophy and a victim, it pays for everything.

And another question - since everything is so beautiful, what are the reasons for these two facts:
- the recently adopted law, which allows Putin to single-handedly manage the deposits of the population, at his own discretion, including freezing "and other measures." What does the seizure "for the good of the motherland" mean, though it is not openly spoken about, but other measures are hidden behind the phrase ""? By the way, do you have savings that are in banks?

Difficult to answer, I don't know what kind of law you mean, please clarify. I don't keep large savings in a bank deposit.

- 80% of Russians started saving in the spring of 2022. Most of the respondents said that they are trying to save on everything (44%), some even on food, follows from a survey by the Zarplata.ru service. The main reason for savings 61% of respondents named the increase in prices. But you obviously don’t fall into these 80% of losers, did I guess correctly?

My financial situation has known better times than today. But I take this calmly, during the sanctions in 2014 after the annexation of Crimea, it was much worse, during the crypto winter in 2018-19, perhaps, too. I do not make of consumption a religion or a cult.

[DrBeer]

I seriously think that everything is fine in Russia even now. You can always do something better, but this is not a reason to indiscriminately deny existing achievements. Thanks for the kind words.
...
My financial situation has known better times than today. But I take this calmly, during the sanctions in 2014 after the annexation of Crimea, it was much worse, during the crypto winter in 2018-19, perhaps, too. I do not make of consumption a religion or a cult.

I will be extremely brief - if what you NOW call "good", then I'm even scared to imagine what happened to you and your country before today's period
Now it becomes absolutely clear why you do not trust the Russian banking system ("I do not keep large savings in a bank deposit.")

"during the sanctions of 2014 after the annexation of Crimea, it was much worse" but this is generally interesting! I.e. actually absent sanctions gave a very negative result, and total sanctions - you only feel better? Excuse me - you are either lying or delusional ... Although stop .. There is another option - you just never saw what it is to live well
I don’t want to offend you, honestly, no offense, it’s just that this phrase is absolutely open illogicality or lies.

[be.open]

I will be extremely brief - if what you NOW call "good", then I'm even scared to imagine what happened to you and your country before today's period
Now it becomes absolutely clear why you do not trust the Russian banking system ("I do not keep large savings in a bank deposit.")

I do not trust the banking system, not because it is Russian, but because it is a banking system. That's why I'm here.

"during the sanctions of 2014 after the annexation of Crimea, it was much worse" but this is generally interesting! I.e. actually absent sanctions gave a very negative result, and total sanctions - you only feel better? Excuse me - you are either lying or delusional ... Although stop .. There is another option - you just never saw what it is to live well
I don’t want to offend you, honestly, no offense, it’s just that this phrase is absolutely open illogicality or lies.

The sanctions of 2014 immediately halved the exchange rate of the ruble against the dollar and, accordingly, many goods also doubled in price, and the ruble exchange rate never returned back then, unlike the events of this spring. Therefore, every Russian painfully felt the sanctions of 2014 on his pocket. Now the ruble exchange rate has again fallen by half at first, but then quickly recovered to its original level and even better, so the impact of sanctions is much less noticeable.

Maybe in response you will share your impressions of how to live in a bankrupt country with an economy paralyzed by military operations, with a halved GDP, devaluation of the hryvnia and a key rate of 25%, which makes any commercial activity impossible except for short-term speculation? What is it like to be completely dependent on subsidies and handouts from the West?

[Ozero]

In my opinion, the Russians cannot rejoice at the strong ruble now. Let's see what they say about this in Russia itself.
"In fact, the inadequately high exchange rate of the ruble has a very negative impact on the Russian economy, which has been crippled by sanctions." This statement was made on the air of the federal TV channel "Russia 24" by the Minister of Economic Development of the Russian Federation Maxim Reshetnikov. The head of the Ministry of Economic Development said that the ruble "excessively strengthened" and called it a challenge for the Russian economy. "It creates a problem for both our exporters and importers," Reshetnikov told the Russians. He clarified that the ruble strengthened not "from a good life." This is the result of a sharp drop in demand for the currency in the country (primarily for the dollar and the euro). The minister called on the Central Bank of the Russian Federation to take urgent measures to weaken the national currency.

Today in Russia the dollar is traded at the rate of 55.8 rubles. True, it is almost impossible to buy it - there is no currency in banks, and speculators sell it much more expensive. In a healthy economy, the strengthening of the national currency is a sign of growth. However, in the case of Russia, this is evidence of "paralysis".
In fact, there is a currency in the Russian economy, but it is not in demand by either business or the population. Moreover, the population, perhaps, would like to acquire cheaper dollars and euros, but this opportunity was blocked by the authorities.
Plus, the Central Bank limited $10,000 per month to the possibility of withdrawing foreign currency abroad.

"A strong ruble in the current situation does not indicate the absence of systemic problems in the Russian economy. Moreover, it is more likely to become a very serious problem than a victory for the country's monetary policy. However, the reason for the strengthening of the ruble is actually artificial and is a consequence of the policy of the Russian central bank. There is only one reason for the strengthening of the ruble - a significant surplus in the country's balance of payments," Delo said in a comment. ua Chairman of the Board of Unex Bank Ivan Svitek.
"Measures taken by the Russian Central Bank back in February-March actually blocked the possibility of capital withdrawal from the country by foreign investors and significantly limited such opportunities for the population," the head of Unex stressed. "For example, now citizens of the Russian Federation are allowed to transfer no more than $10,000 a month abroad. Withdrawals of cash from accounts are limited. The ruble is not currently a freely convertible currency."

Somewhere towards the end of the year, we will see what will happen to the Russian ruble. And this will only be the beginning.

[Sithara007]

For the last two weeks or so, the Ruble has remained at levels of 55-60 against the USD. And this is not beneficial for the Russians at all. Now a large part of the hydrocarbon trade has moved to RUR and the increased strength of the national currency means that the Russian government will be receiving less Rubles from the export duty and mineral extraction tax (MET). That said, I don't understand why the finance ministry is not taking steps to devalue the Ruble. Doing so is much easier, when compared to strengthening the currency. As of now, everyone is losing out, including the wheat farmers, coal miners and oil companies. 

[be.open]

For the last two weeks or so, the Ruble has remained at levels of 55-60 against the USD. And this is not beneficial for the Russians at all. Now a large part of the hydrocarbon trade has moved to RUR and the increased strength of the national currency means that the Russian government will be receiving less Rubles from the export duty and mineral extraction tax (MET). That said, I don't understand why the finance ministry is not taking steps to devalue the Ruble. Doing so is much easier, when compared to strengthening the currency. As of now, everyone is losing out, including the wheat farmers, coal miners and oil companies. 

The US dollar is experiencing problems with inflation, that is, it is getting cheaper. The world's leading currencies, such as the euro, pound and yen, are depreciating against the dollar, that is, they are depreciating even more. It seems that the world economy can now be characterized by the words recession and stagflation. Russia is watching the ongoing processes, but does not seek to fall into this abyss along with everyone else, so the Central Bank of Russia does not make efforts to devalue the ruble, even if it is unprofitable for exporters. It is more important to maintain the stability of the domestic market and prevent devaluation shocks for the population. Russia has a huge margin of safety due to the National Welfare Fund and many years of living with a budget surplus. Let the dollar fall - the ruble will not fall even faster, but rather will strengthen, I expect a return to the level before 2014, when the dollar was worth 30-35 rubles.

[Pomogator]

Understand that the ruble has become the most growing currency because before that it was the most unstable and fallen. Of course, no one expected just such a growth, but the competent actions of Russian economists gave a very good result.

[Ucy]

Understand that the ruble has become the most growing currency because before that it was the most unstable and fallen. Of course, no one expected just such a growth, but the competent actions of Russian economists gave a very good result.

I doubt they have any idea what you are talking about.   Referring to the bolded

[laredo7mm]

For the last two weeks or so, the Ruble has remained at levels of 55-60 against the USD. And this is not beneficial for the Russians at all. Now a large part of the hydrocarbon trade has moved to RUR and the increased strength of the national currency means that the Russian government will be receiving less Rubles from the export duty and mineral extraction tax (MET). That said, I don't understand why the finance ministry is not taking steps to devalue the Ruble. Doing so is much easier, when compared to strengthening the currency. As of now, everyone is losing out, including the wheat farmers, coal miners and oil companies. 

The US dollar is experiencing problems with inflation, that is, it is getting cheaper. The world's leading currencies, such as the euro, pound and yen, are depreciating against the dollar, that is, they are depreciating even more. It seems that the world economy can now be characterized by the words recession and stagflation. Russia is watching the ongoing processes, but does not seek to fall into this abyss along with everyone else, so the Central Bank of Russia does not make efforts to devalue the ruble, even if it is unprofitable for exporters. It is more important to maintain the stability of the domestic market and prevent devaluation shocks for the population. Russia has a huge margin of safety due to the National Welfare Fund and many years of living with a budget surplus. Let the dollar fall - the ruble will not fall even faster, but rather will strengthen, I expect a return to the level before 2014, when the dollar was worth 30-35 rubles.

Though Putin's gamble looks like a decisive win against the westerners the more important thing is to maintain this economic growth and stability. I am not sure the ruble could go that far but if it can maintain its current position in these situations then this could be a game-changing situation for the Russian economy.

USD is falling and it seems every plan has failed to revive it.

[Naficopa]

Though Putin's gamble looks like a decisive win against the westerners the more important thing is to maintain this economic growth and stability. I am not sure the ruble could go that far but if it can maintain its current position in these situations then this could be a game-changing situation for the Russian economy.

USD is falling and it seems every plan has failed to revive it.

There is an end to everything. USA tries to control the whole world. They think whatever they say - the world should follow them.
But Russia stood alone and Russia is going to tell the whole world that they are not going to let anyone impose orders over them

[DrBeer]

I will be extremely brief - if what you NOW call "good", then I'm even scared to imagine what happened to you and your country before today's period
Now it becomes absolutely clear why you do not trust the Russian banking system ("I do not keep large savings in a bank deposit.")

I do not trust the banking system, not because it is Russian, but because it is a banking system. That's why I'm here.

"during the sanctions of 2014 after the annexation of Crimea, it was much worse" but this is generally interesting! I.e. actually absent sanctions gave a very negative result, and total sanctions - you only feel better? Excuse me - you are either lying or delusional ... Although stop .. There is another option - you just never saw what it is to live well
I don’t want to offend you, honestly, no offense, it’s just that this phrase is absolutely open illogicality or lies.

The sanctions of 2014 immediately halved the exchange rate of the ruble against the dollar and, accordingly, many goods also doubled in price, and the ruble exchange rate never returned back then, unlike the events of this spring. Therefore, every Russian painfully felt the sanctions of 2014 on his pocket. Now the ruble exchange rate has again fallen by half at first, but then quickly recovered to its original level and even better, so the impact of sanctions is much less noticeable.

Maybe in response you will share your impressions of how to live in a bankrupt country with an economy paralyzed by military operations, with a halved GDP, devaluation of the hryvnia and a key rate of 25%, which makes any commercial activity impossible except for short-term speculation? What is it like to be completely dependent on subsidies and handouts from the West?

So it turns out that sanctions, even those primitive ones, gave such a tangible blow to the economy and the standard of living of ordinary Russians? So all these clowns who squealed "don't make our Iskanders laugh" and "sanctions are only good" are liars?! Maybe Putin is also lying that a cheap ruble is just a salvation for Russia? Oh, you are in the heat of the moment and forget about propaganda and narratives to calm the masses in Russia! See that they do not sit down under the article "for insulting the feelings of believers to Putin." Here for you anonymity is really necessary and critically important

"Maybe in response you will share your impressions of how to live in a bankrupt country with an economy paralyzed by military operations, with a halved GDP, devaluation of the hryvnia and a key rate of 25%, which makes any commercial activity impossible except for short-term speculation? What is it like to be completely dependent on subsidies and handouts from the West?" - I would be happy to answer the question in essence, but of course I will not answer propaganda nonsense, at least in the formulation of the question. The provocation failed, demand an update of the "manual"

Although ... very briefly, and in your key life values, I will answer in your own style "I live happily, I have 1 GB of Internet for $ 8, and tap water, and taxis are inexpensive, which I may not like if everything is like that wonderful !"

PS We'll talk about handouts in a year or two, when you next time beg from "hated America" ​​for chicken legs, in the new "Biden's Legs" ))

[Sithara007]

The US dollar is experiencing problems with inflation, that is, it is getting cheaper. The world's leading currencies, such as the euro, pound and yen, are depreciating against the dollar, that is, they are depreciating even more. It seems that the world economy can now be characterized by the words recession and stagflation. Russia is watching the ongoing processes, but does not seek to fall into this abyss along with everyone else, so the Central Bank of Russia does not make efforts to devalue the ruble, even if it is unprofitable for exporters. It is more important to maintain the stability of the domestic market and prevent devaluation shocks for the population. Russia has a huge margin of safety due to the National Welfare Fund and many years of living with a budget surplus. Let the dollar fall - the ruble will not fall even faster, but rather will strengthen, I expect a return to the level before 2014, when the dollar was worth 30-35 rubles.

Don't know if I can agree to this. In case the national currency gets devalued, then I believe that it is still manageable. Imports will get reduced, since they become more expensive, but for the exporters it will be beneficial. EMIs will go up and that will cause trouble for those who have taken the bank loans. citizens will be happy, as they get more returns from their term deposits. On the other hand, if the exchange rate gets strengthened, it will destroy the exporters. A lot of people may lose job. Farmers will be hit hard, as they need to sell their produce at a loss (especially wheat, sunflower oil.etc). On top of all this, the trade deficit will widen.

[be.open]

The US dollar is experiencing problems with inflation, that is, it is getting cheaper. The world's leading currencies, such as the euro, pound and yen, are depreciating against the dollar, that is, they are depreciating even more. It seems that the world economy can now be characterized by the words recession and stagflation. Russia is watching the ongoing processes, but does not seek to fall into this abyss along with everyone else, so the Central Bank of Russia does not make efforts to devalue the ruble, even if it is unprofitable for exporters. It is more important to maintain the stability of the domestic market and prevent devaluation shocks for the population. Russia has a huge margin of safety due to the National Welfare Fund and many years of living with a budget surplus. Let the dollar fall - the ruble will not fall even faster, but rather will strengthen, I expect a return to the level before 2014, when the dollar was worth 30-35 rubles.

Don't know if I can agree to this. In case the national currency gets devalued, then I believe that it is still manageable. Imports will get reduced, since they become more expensive, but for the exporters it will be beneficial. EMIs will go up and that will cause trouble for those who have taken the bank loans. citizens will be happy, as they get more returns from their term deposits. On the other hand, if the exchange rate gets strengthened, it will destroy the exporters. A lot of people may lose job. Farmers will be hit hard, as they need to sell their produce at a loss (especially wheat, sunflower oil.etc). On top of all this, the trade deficit will widen.

Right now, Russia is at a very interesting historical crossroads. Figuratively speaking, she needs to make a very difficult choice between two different paths of development, one of which is "easy" and the other is "right". The "easy" way is to continue to be a raw materials appendage and a gas station country, reorienting logistics routes from West to East. The "right" way is to block all the ways of capital outflow from the country to focus on internal development. Of course, this division is figurative, these two paths are largely intertwined and one does not exclude the other, it is more a matter of prioritization. But in many ways, it is the internal policy of the regulator in relation to the ruble exchange rate that will be a reliable indicator of which path Russia has chosen as its main priority.