Donald Trump says Russian currency at ‘historic high’ due to soaring fuel prices
Former US President Donald Trump said the strengthening of Russia’s currency, the ruble, to an all-time high is due to soaring oil prices. Russia eased capital controls which led to the recovery of the Russian ruble. The former US president said soaring oil prices and Moscow’s transition to paying for energy in its own currency has earned Russia “a fortune”.
Russian President Vladimir Putin’s military operation in Ukraine could push oil prices up to between $30 and $40 a barrel, Trump said in a TV interview. Russia earns about $20 billion a month from energy exports and since announcing that “hostile countries” would make payments in rubles, some foreign buyers have complied with the demand. This, in turn, helped the ruble become the best performing currency. Putin controlled exports due to the Western embargo and sanctions which offset rising commodity prices.
Russia cuts foreign exchange earnings to 50% from 80%
Since May 29, the ruble has become one of the strongest currencies in the world. The share of foreign exchange earnings that exporters are required to sell is reduced from 80% to 50%, the Russian Finance Ministry said in a statement. He further insisted on “the stabilization of the exchange rate and the achievement of adequate levels of liquidity in foreign currencies on the internal market”. The ruble is currently appreciating 30% against the dollar. The appreciation of the Russian currency is reaching “a peak”, the country’s economy minister said, adding that future rate cuts would further ease the pressure on currency.
Putin previously claimed that despite Western-coordinated sanctions against his country, Russia’s economy “will remain open” under the new conditions. At a meeting of Russian Duma officials and its finance ministers, Putin reiterated that Moscow would “expand cooperation with countries interested in a mutually beneficial partnership,” referring to East Asian allies.
He insisted that “a whole range of issues are important here”, including reducing reliance on the US dollar for trade and building alternative payment methods with Russia’s own national currency, the ruble. . Putin stressed that the strategic importance of such arrangements “has increased dramatically” in recent months as Moscow has pledged to “completely withdraw” US dollar assets from its National Wealth Fund.
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