WASHINGTON, KOMPAS.TV — The ruble is no longer rubble, the Russian exchange rate has risen stronger than before the country invaded Ukraine amid pressure from severe economic sanctions from the United States, the European Union and their allies, raising questions about the impact of Western sanctions on Russia for its invasion of Ukraine, such as reported Associated PressThursday, (31/3/2022)
The Russian ruble on Wednesday (03/30/2022) bounced back from its fall after the US and its European allies moved to bury Russia’s economy under thousands of new sanctions over its invasion of Ukraine. Recorded on March 30, 2022, the ruble exchange rate strengthened to 76 rubles per 1 US dollar, even stronger than before the invasion of Ukraine.
On February 24, the day of the Russian invasion of Ukraine, the ruble exchange rate against the US dollar was 83 per 1 US dollar. Following a series of U.S. and Western economic sanctions against Russia, the ruble was in free fall, dropping to a low of 150 rubles per 1 U.S. dollar on March 7, and as of March 30, or in just 23 days, the Russian ruble strengthened to 76 rubles per 1 dollar. The US, stronger than before the invasion of Ukraine.
Russian President Vladimir Putin uses extreme financial measures to blunt Western punishment and inflate the value of his currency.
While the West imposed unprecedented levels of sanctions on the Russian economy, Russia’s Central Bank boosted interest rates to 20 percent and the Kremlin imposed strict capital controls on those wishing to exchange their rubles for dollars or euros.
This is a monetary defense that Putin may not be able to defend against as long-term sanctions weigh on the Russian economy.
But the ruble’s recovery could be a sign that sanctions in their current form are not working as hard as Ukraine’s allies have calculated when it comes to pressuring Putin to withdraw his troops from Ukraine.
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It could also be a sign of Russia’s efforts to artificially prop up its currency by leveraging its oil and gas sector.
The ruble had fallen as low as about 150 against the dollar on March 7, when news emerged that the Biden administration would ban imports of Russian oil and gas from the US.
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