excalibur
Diamond Member
- Mar 19, 2015
- 18,082
- 34,197
- 2,290
As Bide once again made a fool of himself. I wonder, did Øbama come up with that line?
finance.yahoo.com
...
International sanctions on Vladimir Putin’s regime sank it to a record low of 121.5 rubles per dollar, triggering memories of the battering it took during the 1998 Russian financial crisis.
Things looked dire enough that U.S. President Joe Biden said the ruble had been reduced to “rubble.”
Now, though, it sure hasn’t. The onshore ruble has surged all the way back to where it was before Putin invaded Ukraine, closing Thursday at 75.75 per dollar in Moscow.
What’s become clear is that despite an incredibly wide-ranging package of sanctions on the Russian government and its oligarchs, and an exodus of foreign businesses, the actions are largely toothless if foreigners keep guzzling Russian oil and natural gas -- supporting the ruble by stocking Putin’s coffers. Even as Russia remains mostly cut off otherwise from the global economy, Bloomberg Economics expects the country will earn nearly $321 billion from energy exports this year, up more than a third from 2021.
The rapid ruble recovery gives Putin a major victory back in Russia, where many people fixate on the currency’s ups and downs, even as his military gets bogged down in Ukraine and outrage mounts across the globe over atrocities it’s committed.
“For the politicians, it is a good PR tool by saying that sanctions don’t have any impact. And it will help to limit the inflation impact,” said Guillaume Tresca, a senior emerging-market strategist at Generali Insurance Asset Management.
Of course, some strategists say the ruble’s latest rally isn’t sustainable: The exchange rate is no longer free-floating and the currency would be at a very different level if barriers were removed.
...
International sanctions on Vladimir Putin’s regime sank it to a record low of 121.5 rubles per dollar, triggering memories of the battering it took during the 1998 Russian financial crisis.
Things looked dire enough that U.S. President Joe Biden said the ruble had been reduced to “rubble.”
Now, though, it sure hasn’t. The onshore ruble has surged all the way back to where it was before Putin invaded Ukraine, closing Thursday at 75.75 per dollar in Moscow.
What’s become clear is that despite an incredibly wide-ranging package of sanctions on the Russian government and its oligarchs, and an exodus of foreign businesses, the actions are largely toothless if foreigners keep guzzling Russian oil and natural gas -- supporting the ruble by stocking Putin’s coffers. Even as Russia remains mostly cut off otherwise from the global economy, Bloomberg Economics expects the country will earn nearly $321 billion from energy exports this year, up more than a third from 2021.
The rapid ruble recovery gives Putin a major victory back in Russia, where many people fixate on the currency’s ups and downs, even as his military gets bogged down in Ukraine and outrage mounts across the globe over atrocities it’s committed.
“For the politicians, it is a good PR tool by saying that sanctions don’t have any impact. And it will help to limit the inflation impact,” said Guillaume Tresca, a senior emerging-market strategist at Generali Insurance Asset Management.
Of course, some strategists say the ruble’s latest rally isn’t sustainable: The exchange rate is no longer free-floating and the currency would be at a very different level if barriers were removed.
...
Mocked as ‘Rubble’ by Biden, Russia’s Ruble Roars Back
(Bloomberg) -- In the days after the Ukraine war began, the ruble’s collapse was a potent symbol of Russia’s newfound financial isolation.Most Read from BloombergCanada to Ban Foreigners From Buying Homes as Prices SoarMocked as ‘Rubble’ by Biden, Russia’s Ruble Roars BackIf Stocks Don’t Fall...
