Russian Ruble Hits 7-Year High Against USD – Economist Says ‘Don’t Ignore Exchange Rates’ – Bitcoin News

Recent news reports detailing that Russia’s fiat currency, the ruble, is the best-performing currency in the world, with the article explaining that U.S. economists are confused by the trend. On Monday, the Russian ruble rose to 55.47 against the dollar, its strongest gain since 2015. While many dismiss the ruble’s exchange rate, Charles Litchfield, deputy director of the Atlantic Council’s Center for Geoeconomics, published an editorial titled: “Don’t Ignore the Exchange Rate: How a Strong Ruble Protects Russia.”

Russian ruble moves higher – report says ‘Putin got the last laugh’

Financial sanctions on Russia do not appear to be affecting the transcontinental country as Western media has described it over the past few months. on Monday, Russian Ruble It hit a new high against the U.S. dollar, posting its highest gain since 2015. Many reports from economists and analysts say that Russia’s financial books are cooked and that much of the ruble’s strength is only a speck. One YouTuber claims that while the ruble looks strong, much of its strength is being propped up by manipulation.

Russian Ruble Hits 7-Year High Against Dollar - Economist Says 'Don't Ignore Exchange Rates'
USD/RUB chart for June 21, 2022. A candle wick indicated that the ruble surged to an all-time high of $155 at $55.47.

Youtuber Jack Bro Tell According to his 146,000 subscribers, “The Russian economy is currently in decline, inflation is high, unemployment is rising, wages are falling, and the GDP of the Russian economy is collapsing.” However, Burrow’s argument can also be said about the United States, Because the U.S. economy seems to be heading for recessioninflation is Highest U.S. jobless claims in 40 years rises as productivity fallsand the GDP of the U.S. economy zoom out Significant in the first quarter of 2022.

Burrow said the Russian government and central bank are manipulating something, which is making the ruble look firm.Arguably, however, US politicians and the Fed may also defendant of manipulate and spread unreliable information. Other reports that did not capitalize on Brow’s biased talking points suggest that sanctions against Russia failed miserably.One Report Russia’s oil boycott didn’t work, and “Putin has the last laugh because he is now selling more oil at higher prices,” according to an article published by armstrongeconomics.com.

Martin Armstrong, author of Armstrongeconomics.com, added:

In April, Russian oil exports up 620,000 bpd to 8.1 million bpd. India (+730,000 b/d) and Turkey (+180,000 b/d) helped offset the international embargo, while the EU remained the largest importer despite sharply reduced shipments. The IEA reported that Russian oil exports rose more than 50 percent year-on-year in the first four months of the year — a boycott that was completely counterproductive to the West and helped strengthen the Russian economy.

Report shows India buys oil from Russia, refines it, then sells it to Europe for profit – European Commission president predicts oil sanctions could backfire

In addition, Russia has maintained Financial transactions are obscure As the country announced it would no longer disclose monthly data on government spending. Russia’s finance ministry told the media that the country needed to “minimize the risk of imposing additional sanctions”.Bitcoin News report Two weeks ago, many countries did not comply with Western sanctions, buy oil from the Russian Federation.For example, India is it is said After getting oil from Russia, after refining it, the country has been selling it to Europe for a profit.

China has also been buying oil from Russia, with some refiners forced to buy oil from the transcontinental country. For example, ISAB, the largest oil refinery in Italy forced Buying crude oil from Russia as banks stopped extending credit to the company.China is largest single buyer Rosneft, since 2021, and data Shows that the country receives an average of 1.6 million barrels of oil per day from Russia.At the same time, oil in Europe has become increasingly scarce because warn Said the UK could face a massive grid blackout. The Economist, a financial newspaper persist in Europe is suffering a ‘severe energy price shock’

In addition, two weeks ago, Charles Litchfield, deputy director of the Atlantic Council’s Center for Geoeconomics, published a editorial That said, one should not ignore the ruble exchange rate. Litchfield’s article says Western governments claim that Russia’s economy will eventually fail, but he believes things need to be reassessed. “The Russian financial system may have withstood the initial shock – but they claim that falling gross domestic product (GDP) and severe input shortages will force Moscow to eventually downgrade as the war enters its ordeal – but it is time to reassess This position,” Litchfield wrote.

Administration officials predict that energy sanctions could backfire and not necessarily work. In an interview in May, European Commission President Ursula von der Leyen described how energy sanctions could backfire.Von der Leyen said that if countries “immediately” approve Russian oil imports, Vladimir Putin “will be able to bring oil he does not sell to the EU to the world market, where prices will rise, and [he will] Sell ​​more. “

tags in this story

Bank of Russia, central bank, Charles Litchfield, China, conflict, crude, cut rate, economics, EU, gas, India, interest rate, Martin Armstrong, Oil, peace talks, ruble, ruble, ruble collapse, ruble falls, ruble plummets, The ruble rises, ruble strength, Russia, Russian bank run, Russian Ruble, Russian bank run, Russia Sanctions, sanction, Ukraine, Ursula Von der Leyen, Vladimir Putin, war, western allies, Youtuber Jack Bro

What do you think of the market performance of the Russian ruble and the theory of why it is so good? Do you think the Russian ruble is backed by officials in the country or do you think the fiat currency is strong? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is Head of News at Bitcoin.com News and a fintech reporter based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code 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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