Topic: Russian Ruble Surpasses Brazil’s Real as Year’s Best-Performing Currency (Read 675 times)

I think Putin has done his home work prior to this war, he knows this will happen and they have a plan of action for every move made by USA and its ally. Through this war we come to know that how big Russia oil and gas reserves are and they are game changer for Russia in current situation. Its time for Ukarine to stop playing in hands of USA and West rather talk directly with Russia for peace.

You are right, it is risky. But right now, Russia has an amazing window of opportunity to realize this. And it did not open on its own, Putin opened it with his pre-emptive invasion of Ukraine, which triggered Western economic sanctions and a mass exodus of Western companies from Russia, which themselves voluntarily freed the huge Russian market from their presence, creating favorable conditions for a large-scale transformation of Russia. I am not a big fan of Putin, but I truly admire the beauty of his strategy and the scope of his ambitions. It would have been much easier and safer to wait for Ukraine's invasion of the Donbass - and Russia would still have won, albeit with much greater human losses, but there would not have been this condemning pressure from the West on Russia, thanks to which Russia had a real chance for a painful transformation from another one country of the third world into the unifying power of the locomotive of the largest continent (which, by right of its birth and geographical location, it is). Let's see, Putin's speech yesterday at the economic forum in St. Petersburg gives a chance to hope that Russia will choose not the easy path of its development, but the right one.

I never expected the Russian economy to be this resilient. As of now, Russia is the most sanctioned country in the world. When the first set of sanctions were introduced, media channels such as CNN and BBC were predicting a complete economic meltdown in a matter of weeks, if not days. The initial indications were in that direction. The Russian Ruble exchange rate plummeted from around 70 to 140, and the stock markets collapsed completely. But then some miracle happened, and in the next few months all these loses were reversed. I regularly check the Western media, and they still publish all sort of scare stories about the Russian economy. But no one can deny the fact that the government did an amazing job to avert an economic meltdown.

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

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

(Bloomberg) -- Capital controls imposed by Russia have turned the ruble into the world’s best performing currency this year, though not many people can pocket a profit on the rally.



image link:  https://i.ibb.co/TtBp8hY/russian-ruble.jpg

The ruble resumed its advance against the dollar on Wednesday as the Moscow Exchange reopened after two days of public holiday. It’s now up more than 11% against the US dollar since the start of the year, surpassing the real’s 9% advance to become the top gainer among 31 major currencies tracked by Bloomberg. The offshore rate is up even more, about 12%.

The ruble’s gains result from a series of measures taken by the government to defend the battered currency in the aftermath of Western sanctions. On top of imposing capital controls, Russia has forced exporters to sell foreign-exchange and is demanding its natural gas be paid for in rubles. Strategists say the rally isn’t credible as many currency-trading shops have stopped dealing in the ruble on the grounds that its value seen on monitors is not the price it can be traded at in the real world.

Still, the irony of the ruble performing so well while at war is remarkable, especially as other countries that imposed capital controls in the recent past have not achieved the same results. Turkey and Argentina tried similar measures when they faced a horde of sellers in the past few years with disastrous consequences for the lira and the peso, which reached fresh all-time lows and never recovered.

The ruble took over from the real as the world’s best performer as the end looms for Brazil’s monetary tightening, which is weighing on the currency. After raising the benchmark rate by 1,075 basis points since early 2021, policy makers in the Latin American nation have signaled a slowdown in the pace of hiking, as well as their intention to wrap up the cycle soon. While the real’s carry will remain high, the spread to US rates will likely shrink as the Federal Reserve keeps raising borrowing costs at an aggressive pace.



https://finance.yahoo.com/news/ruble-surpasses-brazil-real-best-162446964.html

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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.

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.

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.

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.