Lyudinovo

Main Menu

  • Home
  • Russian hotel
  • Russian restaurant
  • Russian currency
  • Russian economy
  • Russian budget

Lyudinovo

Header Banner

Lyudinovo

  • Home
  • Russian hotel
  • Russian restaurant
  • Russian currency
  • Russian economy
  • Russian budget
Russian currency
Home›Russian currency›Biden mocked the ruble, calling it “rubble”. But the Russian currency rebounded.

Biden mocked the ruble, calling it “rubble”. But the Russian currency rebounded.

By Lawrence C. Saleh
April 8, 2022
0
0

The value of the Russian ruble fell by 30% after the United States, the European Union and the United Kingdom first issued sanctions in response to the national war against Ukraine. This dip – which, in early March, caused the value of the ruble to fall against the US dollar to less than 1 cent — prompted President Biden last month to mock the currency by calling it “rubbish.”

But the ruble rebounded, nearly doubling its value from its March 7 low. The recent gains mean the currency is now back to where it was before the sanctions imposed by the US and other countries.

Reasons for the rebound include support from the Russian government, as well as continued purchases of Russian energy from the European Union and other countries, Jane Foley, head of FX strategy for Rabobank London, told CBS News. . Even with the large-scale sanctions, Russia continues to export oil, gas and coal, with Bloomberg Economics estimating that the country’s energy exports increase by a third this year to $321 billion.

President Vladimir Putin also implemented “massive capital controls” to stabilize the ruble, strengthening the currency, Foley noted.

“This stability of the Russian ruble is proving beneficial for the economy,” she said. “Russians are putting money back into their own banks. This helps support the Russian ruble.”

Despite the ruble’s recent rally, the international effort to isolate Russia is taking a heavy toll on its economy. The country’s gross domestic product will shrink by 15% this year, the Institute of International Finance recently predicted. To put that into perspective, US GDP fell 3.5% in 2020, when the pandemic shut down much of the national economy.

“Russia has not experienced a recession of this magnitude since the 1990s,” said Elina Ribakova, IIF’s deputy chief economist in a report. “This is an unprecedented shock to the Russian economy.”

Russia has banned foreigners from selling assets they own in the country. This has prevented some Western companies that have ceased doing business in Russia from selling their properties, factories or other assets in Russia.

“There are 400 companies that have said they’re pulling out of Russia and would like to sell assets but can’t,” Foley said.


New sanctions target major Russian banks and daughters of President Vladimir Putin

05:35

Russia has also said ‘unfriendly’ nations must pay for energy exports in roubles, a measure created to prop up the currency, but the edict may not have much effect, according to a new analysis of the Federal Reserve Bank of St. Louis.

The biggest problem is Europe’s dependence on Russian energy, Foley said. While the EU has agreed to ban Russian coal, he has yet to agree a sweeping embargo on oil and natural gas that would deal a bigger blow to the Russian economy. This is largely because a ban on Russian energy imports could trigger a recession in Europe.

In the meantime, ongoing European imports of Russian energy are “bringing Russia quite a few rubles … and that means they are capable of mitigating the blow to the economy,” she said. .

After


Source link

Related posts:

  1. World Cup, the Russian currency slows down Seychellois tourism; Germany, France, Italy are bright spots
  2. Commodities to push Russian currency higher in 2021, Saxo Bank predicts – RT Business News
  3. Credit Suisse expects Russian currency to strengthen to 65-70 rubles against USD in 2021 – Business & Economy
  4. The share of remittances in Russian currencies is growing rapidly

Categories

  • Russian budget
  • Russian currency
  • Russian economy
  • Russian hotel
  • Russian restaurant

Archives

  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • January 2021
  • December 2020
  • September 2020
  • July 2020
  • June 2020
  • January 2020
  • October 2019
  • May 2019
  • March 2019
  • February 2019
  • December 2018
  • November 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • March 2018
  • September 2017
  • June 2017
  • March 2017
  • January 2017
  • December 2016
  • November 2016
  • June 2016
  • December 2015
  • June 2015
  • April 2015
  • March 2015
  • February 2015
  • December 2014
  • November 2014
  • May 2014
  • April 2014
  • March 2014
  • October 2012
  • June 2012
  • March 2012
  • February 2012
  • December 2010

Recent Posts

  • Kanye West is potentially associating with this famous restaurant
  • Are gold and commodities the answer to the Western monetary crisis?
  • Rowan Atkinson’s wild hotel party leaves dogs moaning and others fear Russian invasion
  • Russian minister expects legalization of digital currency soon
  • Despite soaring gas and hotel prices, Hamptons restaurant owner is seeing ‘record demand’
  • Privacy Policy
  • Terms and Conditions