Ruble stronger than before Ukraine crisis — RT EN

7 Apr 2022 12:38 pm

After the start of the Ukraine war, the value of the ruble fell significantly. Then things went up again due to courageous steps by the Russian leadership. On Thursday, the ruble hit its highest level against major currencies since February 23.

The Russian ruble rose to 76 rubles against the US dollar and 82 rubles against the euro on Thursday, hitting the highest levels against major currencies since February 23.

After Russia launched its special military operation in Ukraine and the US and its allies imposed unprecedented sanctions on the country’s financial system, the ruble plummeted to historic lows. On March 7, the Russian currency fell as low as 150 rubles per US dollar.

Already on February 24, immediately after the start of the military operation, Russia’s currency plummeted as international sanctions were aimed at the freely traded currency. Western countries froze Moscow’s foreign exchange reserves, making it difficult for the Russian central bank to prop up the ruble through foreign currency sales.

The Russian government took measures to stabilize the country’s sanctions-hit economy, which helped the national currency recover from record lows. The central bank imposed immediate capital controls, including a ban on foreigners trading in Russian assets and forced exporters to sell hard currency.

The Russian currency received a further boost after President Vladimir Putin announced in March that “unfriendly countries” that have imposed sanctions on Moscow should only pay for Russian natural gas in rubles. The EU rejected the request. However, Hungary and Slovakia agreed to accept the new form of payment.

Another factor in favor of the ruble was the March 25 announcement by Russia’s central bank that the regulator would resume gold purchases at a fixed price of 5,000 rubles per gram between March 28 and June 30. This pegs the ruble to gold, and since gold is traded in US dollars, this sets a floor price for the ruble against the US dollar, resulting in a new exchange rate between the two currencies that is closer to that of values ​​observed on Thursday.

More on the subject – Crimean representative to the Russian President: In the south of Ukraine, the ruble will become the main currency

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