How Russia Rescued the Ruble
Just after the invasion of Ukraine the Russian Ruble tumbled about 50% when measured against a reference currency such as the US Dollar.
Such a plunge in currency value is a nightmare for any country, because it basically points to the destruction of its economy.
And it's impossible to reverse, right? Wrong. Russia not only reversed it but did it fast, so now the Ruble is as strong as ever.
How did Russia do this?
Europe buys oil and gas from Russia, a lot of it. They pay Russia in US dollars to the tune of over $700 million per day.
Russia simply demanded payment in Rubles, causing Europe to go into the FX market to buy Rubles.
That drove up the value of the Ruble, so now it's strong and back at pre-invasion levels.
And Europe is still paying Russia.
Content written and posted by Ken Abbott abbottsystems@gmail.com
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