Russian ruble hits 7-year high against the US dollar – Economist says ‘don’t ignore the exchange rate’ – Bitcoin Economy News

Recent news has detailed that Russia’s fiat currency, the ruble, was the best performing currency worldwide and the articles explained that American economists were baffled by the trend. On Monday, the Russian ruble rose to 55.47 to the dollar, which was the biggest rise since 2015. While many dismissed the ruble exchange rate, Charles Lichfield, deputy director of the Atlantic Council’s Geoeconomics Center, published an editorial called: “Don’t ignore the exchange rate: how a strong ruble can protect Russia.”

Russian ruble rises highest – report says ‘Putin is having the last laugh’

Financial sanctions against Russia are apparently not affecting the transcontinental country as much as Western media has portrayed in recent months. On Monday, the Russian ruble hit a high in price against the US dollar and was the highest since 2015. There have been many reports from economists and analysts who have said that Russia’s financial books are cooked and most of the strength of the ruble is simply smoke and mirrors. One Youtuber claims that while the ruble looks strong, most of the strength is bolstered by manipulation.

Russian ruble hits 7-year high against US dollar - economist says 'don't ignore exchange rate'
USD/RUB chart on June 21, 2022. A candle wick indicates that the ruble has risen well above the all-time high of 55.47 per dollar in the 155 range.

Youtuber Jake Broe told his 146,000 subscribers that the “Russian economy is sinking, inflation is high, unemployment is rising, wages are falling, the Russian economy’s GDP is collapsing.” However, Broe’s arguments can also be said about the United States, as the American economy appears to be heading towards a recession, inflation is at its highest in 40 years, US unemployment claims have increased as productivity has fallen. and the US economy’s GDP shrank significantly in the first quarter of 2022.

Broe says the Russian government and central bank are manipulating things, which has made the ruble look strong. However, without a doubt, US politicians and the Federal Reserve can also be accused of manipulating and disclosing unreliable information. Other reports that do not capitalize on Broe’s biased talking points indicate that sanctions against Russia have failed miserably. A report published by armstrongeconomics.com says the Russian oil boycott is not working and “Putin is having the last laugh as he is now selling more oil at a higher price”.

Armstrongeconomics.com author Martin Armstrong added:

In April, Russian oil exports rose 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 biggest importer despite a sharp drop in shipments. The IEA reported that Russian oil exports increased by more than 50% year-on-year during the first four months of the year – the boycott completely backfired in the West and helped to strengthen the Russian economy.

Report shows India buys oil from Russia, refines it and then sells it to Europe at a profit – EU Commission President predicts oil sanctions could backfire

Furthermore, Russia has been keeping its financial dealings murky as the country announced that monthly government spending figures would no longer be released. Russia’s Finance Ministry told media that the country needed to “minimize the risk of imposing additional sanctions”. Bitcoin.com News reported two weeks ago that several countries are not adhering to Western sanctions and are buying oil from the Russian Federation. For example, India is getting oil from Russia and after the oil is refined, the country sells it to Europe at a profit.

China is also buying oil from Russia, and several oil refineries are forced to buy oil from the transcontinental country. For example, Italy’s largest refiner, ISAB, was forced to source crude from Russia because banks stopped providing the company with credit. China has been the biggest single buyer of Russian oil since 2021, and data shows that the country sources an average of 1.6 million barrels a day from Russia. Meanwhile, oil is becoming scarcer in Europe as warnings say Britain could face massive grid blackouts. Financial newspaper The Economist insists Europe is suffering “a severe energy price shock”

Also, two weeks ago, Charles Lichfield, deputy director of the Center for Geoeconomics at the Atlantic Council, published an editorial that says people should not discount the ruble exchange rate. Lichfield’s article says that Western governments claimed that eventually Russia’s economy would eventually fail, but he thinks things need to be reassessed. “The Russian financial system may have weathered the initial shock – but a drop in Gross Domestic Product (GDP) and a crippling shortage of inputs, they claimed, would force Moscow to eventually scale back as the war entered a difficult phase – but it is time to reassess that stance,” Lichfield wrote.

Government officials predicted that energy sanctions could backfire and not necessarily work. During an interview in May, EU Commission President Ursula Von Der Leyen described how energy sanctions can backfire. Von Der Leyen said that if countries “immediately” sanction Russian oil imports, Vladimir Putin “could take the oil he does not sell to the European Union to the world market, where prices will rise, and [he will] sell it for more.”

Marks in this story

Bank of Russia, Central Bank, Charles Lichfield, China, conflict, crude oil, cut rate, economy, EU, Gas, India, interest rate, Martin Armstrong, OIL, peace talks, ruble, ruble, ruble fall, ruble fall, ruble dips, Ruble Rises, Ruble Strength, Russia, russia bank run, Russia Rubble, russian bank run, russian sanctions, Sanctions, Ukraine, Ursula Von Der Leyen, Vladimir Putin, War, Western Allies, Youtuber Jake Broe

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

Jamie Redman

Jamie Redman is the news lead for Bitcoin.com News and a financial technology journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source and decentralized applications. Since September 2015, Redman has written over 5,000 articles for Bitcoin.com News on the disruptive protocols emerging today.




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