The Russian ruble hit a seven-year high against the dollar last week, and while analysts played down gains, one economist said people should not “ignore the exchange rate.” U.S. economists have been baffled by the rouble’s market performance, citing Russian officials as saying that a stronger ruble “makes Russian exports more expensive.” Additionally, U.S. President Joe Biden continues to blame Vladimir Putin for high oil prices.
Vladimir Putin says Western sanctions clearly ‘not successful’
The Russian ruble has been at its highest level against the dollar since May 2015, and many say Western sanctions have failed.At the annual St. Petersburg International Economic Forum, Russian President Vladimir Putin Say The attempt to destroy the Russian economy did not materialize. “The idea is clear: to smash the Russian economy violently,” Putin declared. “They didn’t succeed. Obviously, that didn’t happen.” Traditionally, when a country is subject to broad sanctions from most countries, capital leaves the region and the currency’s overall value against other fiat currencies declines.
However, Russia is Second largest oil exporter and command the highest position as world’s largest natural gas exporter Too. The United States and the European Union (EU) are doing all they can to sanction Russia, but the EU has been forced to buy gas and oil from the country in less obvious ways.wealth india claim India ostensibly buys oil from the Russian Federation and sells it back to the EU for profit.New York Post detail Analysts believe the ruble’s strong performance is due to the Kremlin’s capital controls and the fact that global oil and gas prices have surged. Apart from India, China and South Korea have been buying oil from Russia.
One study Bloomberg Economics estimates Putin could amass about $321 billion in profits from energy exports alone. Tatiana Orlova, chief economist for emerging markets at Oxford Economics Tell However, CBS said Russia’s import market is collapsing. “In addition to soaring export earnings, our Russian imports have dropped significantly due to Western sanctions,” Orlova noted in an interview with CBS Money Watch. Russia is still making record profits, Max Hess, a fellow at the Foreign Policy Institute, told CNBC. Hess said:
The ruble exchange rate you see exists because Russia is earning a record current account foreign exchange surplus.Although Russia may now have slightly less sales to the West as the West is cutting off [reliance on Russia], they are still selling a ton at all-time high oil and gas prices. So this has resulted in a huge current account surplus.
Service Providers Refuse to Update Russia’s ATMs, Biden Says Americans Will Have to Pay High Gas Prices ‘As Long as’ Stop Putin’s Invasion of Ukraine
At the same time, the United States and various Western companies are doing everything they can to stifle the Russian economy. Just recently, the country’s central bank introduced a new 100-ruble banknote, but automated teller machines (ATMs) something wrong with the new bill. Western sanctions forced ATM companies such as NCR and Diebold Nixdorf to withdraw from Russia. Allegedly, the ATM service provider refused to update the ATM machines and the machines refused new banknotes. According to an unnamed source in the payments industry, ATMs in Russia are not a priority. “Given the geopolitical situation, it’s hard to imagine that developing the Russian market will be a priority,” explained the people.
U.S. President Joe Biden was asked at a NATO summit press conference on June 30 how long U.S. drivers had to pay exorbitant gas prices at gas stations. Biden said to stop Putin from invading Ukraine “as long as it is necessary”. “Russia can’t actually beat Ukraine and overtake Ukraine as long as it needs to,” Biden Tell reporter. A Fortune report explained that U.S. citizens “do not appear to support” Biden’s decision.The report cites the latest AP-NORC Center for Public Affairs Research Poll This shows a lack of confidence in Biden’s leadership.
When it comes to handling the U.S. economy, 70 percent of Americans, including 43 percent of Democrats, disapprove of Biden’s management. 60% of Americans disapprove of Biden’s leadership, 80% of US citizens think the ‘economic state’ of the US [are] “Poor people” while 67% of 80% are Democrats. Yet Biden and his administration wholeheartedly believe Putin is responsible for rising global gas prices. “We could have given Putin’s brutality to Ukraine,” Biden said The war turned a blind eye, and gas prices wouldn’t skyrocket as they are, but the U.S. stepped up. ” Say June 27.
What do you think of the strength of the Russian ruble and Biden saying Americans have to endure high oil prices due to Putin’s war? Let us know what you think about this topic in the comments section below.
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