Russian ruble hits 7-year high against US dollar – economists say ‘don’t ignore the exchange rate’ – economics Bitcoin News

Russian ruble hits 7-year high against US dollar – economists say ‘don’t ignore the exchange rate’ – economics Bitcoin News

Recent news reports have detailed that Russia’s fiat currency, the ruble, was the best-performing currency worldwide, and articles reported that US economists were surprised by the trend. On Monday, the Russian ruble rose to 55.47 per dollar, the highest increase since 2015. While many have dismissed the ruble’s exchange rate, Charles Litchfield, deputy director of the Atlantic Council’s Geoeconomics Center, published an editorial titled “Don’t Ignore” Exchange Rates: How a Strong Ruble Could Shield Russia.

Russia’s ruble climbs higher – report says ‘Putin has the last laugh’

Financial sanctions against Russia are not having the same impact on the transcontinental country as Western media has shown over the past few months. On Monday, the Russian ruble tapped a higher price against the US dollar and was the highest increase since 2015. There have been several reports from economists and analysts who have said that Russia’s financial books are ripe and that most of the ruble’s strength is just smoke and mirrors a Youtuber’s claim that while the ruble looks strong, most of the strength is strengthened by manipulation.

Russian ruble hits 7-year high against US dollar – economists say 'don't ignore the exchange rate'
USD/RUB chart for June 21, 2022. A candle wick shows that the ruble has risen to an all-time high in the 155 range above 55.47 per dollar.

Youtuber Jake Bro told his 146,000 subscribers that “the Russian economy is currently tanking, inflation is high, unemployment is rising, wages are falling, the GDP of the Russian economy is falling.” However, Bro’s arguments could also be said of the United States as the US economy is headed for a recession, inflation is at its highest in 40 years, unemployment claims soar in the US due to low productivity, and the US economy. GDP has shrunk. significantly in Q1 2022.

Bro says the Russian government and central bank are manipulating things, making the ruble look stronger. Yet, arguably, US politicians and the Federal Reserve can also be accused of manipulation and spreading unreliable information. Other reports that do not take advantage of Bro’s biases indicate that sanctions against Russia have failed miserably. A report published by Armstrong Economics.com said the Russian oil boycott is not working and that “Putin is having the last laugh because he is now selling more oil at a higher price point.”

Martin Armstrong, author of Armstrong Economics.com, said:

In April, Russian oil exports increased by 620,000 b/d to 8.1 million b/d. India (+730,000 b/d) and Turkey (+180,000 b/d) helped offset the international embargo, while the EU remained the largest importer despite a sharp reduction in shipments. The IEA reported that Russian oil exports grew by more than 50% during the first four months of the year – the boycott has completely backfired on the West and helped bolster the Russian economy.

Report shows India buys oil from Russia, refines it, then sells it to Europe for profit – EU commission president predicts oil sanctions

Additionally, Russia is keeping its financial dealings unclear as the country announced monthly figures on government spending would no longer be disclosed. Russia’s Ministry of Finance told the press that the country needed to “minimize the risk of imposing additional sanctions”. Bitcoin.com News reported two weeks ago that many countries are not complying with Western sanctions and are buying oil from the Russian Federation. For example, India is reportedly getting oil from Russia and after the oil is refined, the country is selling it to Europe for profit.

China is also buying oil from Russia, and many oil refineries are forced to buy oil from the transcontinental country. For example, Italy’s largest refinery ISAB was forced to source crude oil from Russia because banks stopped giving credit to the company. China is the largest single buyer of Russian oil and has been since 2021, and data shows the country receives an average of 1.6 million barrels per day from Russia. Meanwhile, oil shortages in Europe are looming as warnings say Britain could face a massive grid blackout. Economic newspaper The Economist insists that Europe is suffering from “a severe energy-price shock”.

In addition, two weeks ago, Charles Litchfield, deputy director of the Atlantic Council’s Geoeconomics Center, published an editorial saying that people should not dismiss the ruble exchange rate. Litchfield’s article noted that Western governments claimed that, eventually, Russia’s economy would eventually fail, but they felt that things needed to be reevaluated. “The Russian financial system may have suffered an initial setback – but declining gross domestic product (GDP) and a lack of crippling inputs, he claimed, would eventually force Moscow to de-escalate as the war begins a grinding phase. enters – but it is time to reevaluate this stance,” wrote Litchfield.

Government officials had predicted that the energy ban could backfire and would not necessarily work. During an interview in May, EU Commission President Ursula von der Leyen described how energy restrictions could backfire. Von der Leyen said that if countries “immediately” approve Russian oil imports, Vladimir Putin “would be able to move the oil he does not sell to the EU on the world market, where prices would rise, and [he will] Sell ​​it for more.”

Tags in this story

Bank of Russia, Central Bank, Charles Litchfield, China, conflict, crude oil, cut rate, economics, EU, gas, India, interest rate, Martin Armstrong, OIL, peace talks, ruble, ruble, ruble crash, ruble falls , Ruble Plunge, Ruble Rises, Ruble Strength, Russia, Russia Bank Run, Russia Ruble, Russian Bank Run, Russian Sanctions, Sanctions, Ukraine, Ursula von der Leyen, Vladimir Putin, War, Western Allies, Youtuber Jake Bro

What do you think about the Russian ruble market performance and theories as to why it is doing so well? Do you think the Russian ruble is being prepared by the country’s authorities or do you think the fiat currency is strong? Let us know what you think about this topic in the comment section below.

Jamie Redmayne

Jamie Redmayne is the News Lead at Bitcoin.com News and a financial tech journalist based in Florida. Redmayne has been an active member of the cryptocurrency community since 2011. He has a passion for bitcoin, open-source code, and decentralized applications. Since September 2015, Redmayne has written over 5,000 articles for Bitcoin.com News about the disruptive protocol emerging today.




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