The ruble's return to levels last seen before the start of Moscow's military campaign is a sign that the economy may be adjusting to the sanctions, economists say. Sergei Vedyashkin / Moskva News Agency
Bloomberg: Mocked as ‘Rubble’ by Biden, Russia’s Ruble Roars Back
(Bloomberg) -- In the days after the Ukraine war began, the ruble’s collapse was a potent symbol of Russia’s newfound financial isolation.
International sanctions on Vladimir Putin’s regime sank it to a record low of 121.5 rubles per dollar, triggering memories of the battering it took during the 1998 Russian financial crisis. Things looked dire enough that U.S. President Joe Biden said the ruble had been reduced to “rubble.”
Now, though, it sure hasn’t. The onshore ruble has surged all the way back to where it was before Putin invaded Ukraine, closing Thursday at 75.75 per dollar in Moscow.
Read more ....
WNU Editor: Many in the West are saying the ruble's rise will be short lived .... Ruble’s Strength in Face of Sanctions May Be Illusory (VOA). More here .... Russia's ruble has bounced back to pre-invasion levels but the country's economy is still in a dire state. Here's what's going on (Insider).
I do not agree.
Tying the ruble to gold and to commodities like grains/energy/metals .... products that are now globally in short supply and in great demand .... is a game changer, and it follows the same play book that the U.S. used a century ago that helped propelled the U.S. dollar to become a global reserve currency.
To say that this was not expected by the U.S. administration when they confiscated Russia's massive foreign currency reserves while imposing complete financial sanctions is an understatement.
That is not to say that difficult times are ahead for the Russian economy. The same experts who predicted the Russian economy would completely implode are now revising their numbers to say that Russia's GDP will decrease by 15% this year. The Russian Prime minister expects a 7% decline after inflation is taken into account, but a rebound next year.
I am not that pessimistic. I have repeatedly said over the years that the Russian economy is always being underestimated, and the reason why is that Russia's massive underground economy where everyone has a side-hustle is never recognized in the official stats.
Inflation and unemployment will go up, but IMHO the economy should stabilize within a year, and even faster if a resolution to the Ukraine war is found in the coming months.
More News On The Rise Of Russia's Ruble
Russia's Ruble Stages Rebound Despite Western Sanctions -- Moscow Times/AFP
Biden mocked the ruble as "rubble." But the Russian currency has rebounded. -- CBS
Ruble Surges To 5-Month Highs After Russia Unexpectedly Slashes Rates By 300bps -- Zero Hedge
Bank Of Russia Eases More Capital Controls, Allowing Euro & USD Withdraws -- Zero Hedge
6 comments:
Back when I first read of Russia's growing hoard of gold some time ago I thought that was an impressive economic policy. Especially compared to our federal reserve's modern monetary theory which seems to be impressed with cutting down trees and printing ink upon them.
While the efforts have led to a modest recovery in the ruble against the dollar, experts say the ruble is unlikely to return to its pre-war level.
Dark days ahead for the Russian ruble
From 2017 through 2021, Russia’s currency traded between 57 and 80 rubles per dollar, meaning it’s since lost well over 20% of its value, and experts say more pain is on the horizon.
“Unless there is a ceasefire, and something changes materially from this point, it’s very difficult to see the Russian ruble gaining in value against other foreign exchange currencies as the country is now being singled out of the global financial system,” Swissquote’s Ozkardeskaya said.
Russia's rouble rebound not quite what it seems
The truth is probably somewhere between parts of this comment and the editor's theories.
"While the efforts have led to a modest recovery in the ruble against the dollar, experts say the ruble is unlikely to return to its pre-war level."
https://finance.yahoo.com/news/experts-more-dark-days-ahead-222622632.html
10:09 and 10:41 is a fucking tard that cannot reason.
The ruble is safe backed by grain, metals and oil.
Richard Fernandez and Solway are asking the right questions.
Will Joe Biden Bring the U.S. Down With Him?
Policy Analyst Lee Smith:
“the Biden administration represents the terminal stage of a decaying ruling establishment.”
Biden ins a stave IV dementia patient. He might be stage V of VII, but the White House doctor pumps him up full of drugs and the staff hide him the rest of the time that it is hard to tell.
9:09 is a loser, whose trophy wife now hates his guts.
BOSTON (AP) — The credit ratings agency Standard & Poor’s has downgraded its assessment of Russia’s ability to repay foreign debt, signaling rising prospects that Moscow will soon default on external loans for the first time in more than a century.
S&P Global Ratings issued the downgrade to “selective default” late Friday after Russia arranged to make foreign bond payments in rubles on Monday when they were due in dollars. It said it didn’t expect Russia to be able to convert the rubles into dollars within the 30-day grace period allowed.
S&P said in a statement that its decision was based partly on its opinion that sanctions on Russia over its invasion of Ukraine “are likely to be further increased in the coming weeks, hampering Russia’s willingness and technical abilities to honor the terms and conditions of its obligations to foreign debtholders.”
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