Unusual Situation as Russia’s Ruble bounces back as world best per fiat currency

[The Author]

Two months after the Russian ruble fell below a U.S. penny, the transcontinental country’s fiat currency is the best performing currency worldwide. American economists are baffled by the “unusual situation” because a country facing stiff sanctions typically sees its fiat currency decline in value, but Russia’s ruble has done the exact opposite.

Source

Now my question is how often can we see a country's Fiat currency currency thrive despite the harsh economy in the country?

[lovesmayfamilis]

I was a little amused by the title of the topic. But later, I found an explanation and the correct link from where the OP got this news.
https://news.bitcoin.com/american-economists-are-baffled-by-an-unusual-situation-as-russias-ruble-is-the-worlds-best-performing-fiat-currency/
But my opinion suggests that apparently, six packages of sanctions are too few for Russia; a seventh is needed, and if possible, several more, so that we can stop being surprised at the extreme survival of this country.

[The Author]

Code:

[url=https://app.bitcoin.com/news/]Source[/url] 

You did not specify the link, that is not the link to the right news, I code you the link you embedded to let you know that I am right. Likely the news is some weeks or months old, not what is happening presently.


According to what I found online, Russia ruble has not been in its best since the invasion. Russia invaded Ukraine on February 24, ruble price increased during that time, since February 25th and got to its pick on March 11th which is its peak (on the the graph below). Ever since March 11th, ruble price has been on the decline and fall more than the price it was before the war.

https://www.xe.com/currencycharts/?from=USD&to=RUB

Thanks for the correction
Merit sent 

[mk4]

According to what I found online, Russia ruble has not been in its best since the invasion. Russia invaded Ukraine on February 24, ruble price increased during that time, since February 25th and got to its pick on March 11th which is its peak (on the the graph below). Ever since March 11th, ruble price has been on the decline and fall more than the price it was before the war.

And their currency having a blow-off top like a total shitcoin is only just the tip of the iceberg. Their stock market is getting toast, and it seems likely to continue as well.

[avikz]

Two months after the Russian ruble fell below a U.S. penny, the transcontinental country’s fiat currency is the best performing currency worldwide. American economists are baffled by the “unusual situation” because a country facing stiff sanctions typically sees its fiat currency decline in value, but Russia’s ruble has done the exact opposite.

Source

Now my question is how often can we see a country's Fiat currency currency thrive despite the harsh economy in the country?

The answer is natural resources here! Russia is a part of OPEC plus countries and has one of the biggest oil and gas reserves. So now America's dream is coming true when they see EUR is dropping faster than expected. Because that's was always the gameplan of US. Russia has told ass their buyer to pay in  Rubles and as a result their buyers have started selling their euros against Rubles to pay Russia for their oil and gas bills. As a result, EUR is standing at all time low and Russia is getting the benefits of strongest Rubble ever. US is happy because EUR is weakening and UK is happy to prove that Brexit was a correct decision.

[Ucy]

It's actually a miracle. Same way the pandemic went the way alot didn't expect. Truth is like oil in the water no matter how hard you try to hide it it still float for all to see

It will be more obvious in the future.

[Fortify]

Two months after the Russian ruble fell below a U.S. penny, the transcontinental country’s fiat currency is the best performing currency worldwide. American economists are baffled by the “unusual situation” because a country facing stiff sanctions typically sees its fiat currency decline in value, but Russia’s ruble has done the exact opposite.

Source

Now my question is how often can we see a country's Fiat currency currency thrive despite the harsh economy in the country?

It's interesting to see how easily some people can be fooled without doing any proper research on the topic. There is no doubt that Russia has a positive budget which is fuelled by high oil and gas prices right now, but the rest of their maintenance economy is in tatters and we are still only in the very early stages of seeing this play out. Nobody wants to but roubles right now and foreign businesses are being restricted from selling assets as they flee the country after dire sanctions, so Russia can use their relatively large reserves to prop the currency up to any level they want. The central bank of Russia actually went too far in this illusion because an overly strong rouble is actually even more damaging especially in the current situation.

[Gyfts]

I was a little amused by the title of the topic. But later, I found an explanation and the correct link from where the OP got this news.
https://news.bitcoin.com/american-economists-are-baffled-by-an-unusual-situation-as-russias-ruble-is-the-worlds-best-performing-fiat-currency/
But my opinion suggests that apparently, six packages of sanctions are too few for Russia; a seventh is needed, and if possible, several more, so that we can stop being surprised at the extreme survival of this country.

Correct, this shouldn't be too surprising that Russia was able to save their currency slightly within the context of extreme sanctions.

However, during the second week of April 2022, Bitcoin.com News reported on the country’s central bank slashing rates and pegging the ruble to gold. At the time, Russia’s central bank pegged the price of RUB to 5,000 rubles for a gram of gold. Russia also made it so “unfriendly” countries are forced to pay for gas with the ruble. Numerous international buyers are complying with the rule and paying for petro products in rubles. The country’s central bank also slashed Russia’s benchmark bank rate as well.

Russia is sitting on a lot of energy exports that India and China are willing to purchase readily. Other countries in Europe require these energy exports too and there is not an indication that these other countries can immediately switch energy suppliers without drastically raising the costs. Relatively speaking, ruble still isn't performing well.

[Ucy]

Got this from reuter I guess

Source: https://graphics.reuters.com/GLOBAL-CURRENCIES-PERFORMANCE/0100301V041/index.html

[naira]

Regardless of the data that has been displayed, I think everything can be manipulated based on political interests to make the issue a balance of power. I wouldn't be surprised by the sheer volume of data regarding the ruble's rise or fall. Because basically, the impact was worse for those of us who were not involved in the war. But it bears more than the sanctions imposed on Russia. So who is actually going to be hit and who is going to hit the economy of another country when two countries are at loggerheads?

[fiulpro]

Well there are few things that they have been doing:

1. Having extreme control of the market
2. Making sure that they get paid in Rubles for the gas
3. They are selling it at any price possible as well
4. There are also making their domestic market strong

This is just a bubble because the amount of resistance that they can provide is small, this buffer system is not going to work for longer and at the end of the day they will loose and would be down to zero. Don't worry all the regulations and sanctions are working, everyone knows it.

[Leviathan.007]

I don't think the Russian Ruble was ever close to being the world's best fiar currency in history. In order to be the best fiat currency, there are some factors to be checked and some requirements to be done, one important part is the political part, and since Russia doesn't have had a good foreign political related to other countries nad especially the European countries they cannot have the world's best fiat currency, They also faced some economical sanctions and that's why I can say Russian government cannot see this situation in their dreams.

[Xylber]

Code:

[url=https://app.bitcoin.com/news/]Source[/url] 

You did not specify the link, that is not the link to the right news, I code you the link you embedded to let you know that I am right. Likely the news is some weeks or months old, not what is happening presently.


According to what I found online, Russia ruble has not been in its best since the invasion. Russia invaded Ukraine on February 24, ruble price increased during that time, since February 25th and got to its pick on March 11th which is its peak (on the the graph below). Ever since March 11th, ruble price has been on the decline and fall more than the price it was before the war.

https://www.xe.com/currencycharts/?from=USD&to=RUB

You are reading all wrong, you are intepreting exactly the opposite of what the graph says. If comparing USD to RUB, when the line goes up it means you can buy more RUB with a dollar, so, the RUB worth less (or the dollar worth more) the higher the line. When the line goes down it means you can buy less RUB with a dollar, that's means RUB is getting stronger (or the dollar is getting weaker).

If I'm not explaining it well, imagine you are visiting Russia from USA, and you go with dollars. The exchange rate was 1 USD = 135RUB during the war, but now you only get 58RUB. The RUB is more expensive.

And yes, it is true that the RUB has recovered its value and now worth more than before the war.



============
I'll add another piece of data so you guys could know if the price is "real": Check if people in that country (Russia in this case) can freely exchange RUB for USD or, in the other hand, the exchange is limited by law. If Russia limited the exchange by law, RUB will look stronger than what it actually is (as it looks right now).

For example, in Argentina (USD/ARS), the exchange rate is 1USD = 110ARS, but only private banks can access to that price. If you have ARS and want to exchage for USD, you must to pay 210ARS in a paralel market. Politicians do this by limiting the amount of dollars you can freely exchange, or/and, by taxing the exchange. Argentina does both: If you have ARS you can only exchange for 200 USD maximum, and you have to pay a tax of 65%.


EDIT: Yes, Russia limited by law the amount of RUB to USD you can exchange: https://www.washingtonpost.com/business/2022/03/08/ruble-dollar-exchange-barred/

[be.open]

EDIT: Yes, Russia limited by law the amount of RUB to USD you can exchange: https://www.washingtonpost.com/business/2022/03/08/ruble-dollar-exchange-barred/

This is a very old article from the beginning of March, the information in it is not up to date at the moment. Today, Putin canceled the mandatory sale of foreign exchange earnings for exporters, yesterday the Central Bank of Russia increased the export limit from $50,000 to $150,000. Russia is trying in every possible way to weaken the rapidly strengthening ruble, because it is unprofitable with a large positive trade balance. So far, it is not working out very well, apparently the Central Bank will again reduce the key rate in the near future.

[Sithara007]

And their currency having a blow-off top like a total shitcoin is only just the tip of the iceberg. Their stock market is getting toast, and it seems likely to continue as well.

LOL.. you guys have been predicting a complete economic meltdown in Russia for more than 3 months now. The Russian currency and stock market seems to be doing just fine. None of your doomsday predictions have materialized. On the other hand, the commodities that Russia export have gone up in prices by manifold. Wheat went up from $200 per tonne to $500 per tonne. Crude went up from $40 per barrel to $125. LNG used to cost as little as $50 per thousand cubic meters. Now it costs $1,000 to $1,200. If anyone is suffering, it is not the people of Russia. The hydrocarbon importers, such as EU, India and Japan are suffering.

[philipma1957]

And their currency having a blow-off top like a total shitcoin is only just the tip of the iceberg. Their stock market is getting toast, and it seems likely to continue as well.

LOL.. you guys have been predicting a complete economic meltdown in Russia for more than 3 months now. The Russian currency and stock market seems to be doing just fine. None of your doomsday predictions have materialized. On the other hand, the commodities that Russia export have gone up in prices by manifold. Wheat went up from $200 per tonne to $500 per tonne. Crude went up from $40 per barrel to $125. LNG used to cost as little as $50 per thousand cubic meters. Now it costs $1,000 to $1,200. If anyone is suffering, it is not the people of Russia. The hydrocarbon importers, such as EU, India and Japan are suffering.

Thats because biden and putin have worked together to raise oil prices up and over the moon.

All this was done to boost oil prices and as prez bush used to say.

Mission Accomplished.

Russia and USA are like a coin. And the rules of the game are heads I win tails you lose.

They work hand in hand much like the hero in wrestling works hand in hand with the villian in wrestling.

[hatshepsut93]

https://twitter.com/tinkoff_bank/status/1534795372815605766

Russian bank takes 1% monthly fee from accounts that hold over $1,000 in foreign currency. So, basically Russia is forcing everyone to sell foreign currency and buy rubles. This isn't a sign of a healthy economy, it's a sign of a huge economic crisis. In short term it artificially keeps their currency high, in long term the official exchange rate will be ignored, and anyone who is doing business with Russia will use the unofficial one, which will be much lower.

[mk4]

LOL.. you guys have been predicting a complete economic meltdown in Russia for more than 3 months now. The Russian currency and stock market seems to be doing just fine. None of your doomsday predictions have materialized. On the other hand, the commodities that Russia export have gone up in prices by manifold. Wheat went up from $200 per tonne to $500 per tonne. Crude went up from $40 per barrel to $125. LNG used to cost as little as $50 per thousand cubic meters. Now it costs $1,000 to $1,200. If anyone is suffering, it is not the people of Russia. The hydrocarbon importers, such as EU, India and Japan are suffering.

Point me to where I was predicting a complete economic meltdown in Russia. I'll wait. What I posted in this thread was data that literally already materialized; not something I was speculating on.

[cabron]

Got this from reuter I guess

Source: https://graphics.reuters.com/GLOBAL-CURRENCIES-PERFORMANCE/0100301V041/index.html

Owh. Surprisingly OPEC members are not the top of which their currency had boost even after the gas prices are rising.  And I thought its Yuan that will  keep going but Brazilian real, Mexican and Columbian Peso after Rubles seem an interesting result. What did they do, rob US?

Unfortunately, its not something a regular citizen of these countries feel the economy to be better. Or are they just not printing their own currency?
Or it could be that US investors are seeing the future in South America so the invest here.

[Smartprofit]

I don't think the Russian Ruble was ever close to being the world's best fiar currency in history. In order to be the best fiat currency, there are some factors to be checked and some requirements to be done, one important part is the political part, and since Russia doesn't have had a good foreign political related to other countries nad especially the European countries they cannot have the world's best fiat currency, They also faced some economical sanctions and that's why I can say Russian government cannot see this situation in their dreams.

Previously, Russian citizens bought US dollars and euros to travel abroad for tourism purposes.  The family budget for such trips was very large (at least 2-3 monthly salaries). 

However, Russians have now stopped traveling abroad.  This is due to the closure of borders and a general drop in their standard of living. 

This led Russians to stop buying euros and dollars, and began to keep all their money in rubles.  This helps to keep the ruble at a high level. 

Also in Russia, the number of imported goods has sharply decreased. 

For example, the purchase of smartphones and laptops in quantitative and qualitative terms fell by 26 percent compared to the same period last year.  People prefer to repair old electronics and home appliances rather than throw them away and buy new ones. 

One can rejoice that the ruble exchange rate against the dollar and the euro has strengthened, but in fact this event is driven by the general impoverishment of Russians, the decline in their standard of living and general cultural and technological degradation.