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Ruble smashes four-year high against US dollar

Russian Ruble news

The Russian currency strengthens ahead of upcoming tax payment.

  • The Russian ruble reached its strongest position against the US dollar in over four years and reached a seven-year high against the euro on Friday.
  • The ruble is being propelled by recently introduced capital controls, Russia’s new ruble-based gas payment scheme and looming tax payments for corporations pushing up demand for the currency domestically.

The exchange rate reached 57.67 rubles per dollar at 08:13 GMT, its firmest against the US currency since March 2018, according to data from the Moscow Exchange. The ruble also gained nearly 5% on the euro, with the exchange rate now below 60 rubles per euro, hitting a seven-year high.

According to Bloomberg, the Russian currency has become the world’s best-performing currency this year despite its sharp drop in April sparked by unprecedented economic sanctions placed on Russia.

However, it has since strengthened due to measures introduced by the Russian Central Bank and the government. As part of the regulator’s capital control measures, Russian citizens and residents are not allowed to buy euros, US dollars and other European currencies at the official exchange rate until September 9.

The upcoming tax payment is pushing the ruble higher, as it traditionally requires extra conversion of foreign currency to rubles.

Russia’s stock indices have also been on the rise. The dollar-denominated Moscow Exchange index grew by 0.33%, up to 2,444.57 points, while the ruble-denominated RTS index edged higher by 0.72%, up to 1,254.69 points around 07:04 GMT, data from the trading floor shows.

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Source:RT News

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6 COMMENTS

  1. How stupid the collective West to assume a fiat currency system will withstand when it is not fully backed by their own assets and resources. Much of the dollar strength is because of Saudis and other oil exporters and dealers and other countries like Japan, Korea, China who hold huge reserves of USD in addition many poorer countries like India are also required to hold USD for international trade. Excessive quantitative easing and artificially low interest rates in the collective West created huge inflation which is going to take years to control. Russia was going under self sufficiency path for about a decade and they do not need the West who only provide non-essentials and the so called lusury goods to Russia. While ruble is not planned to replace any other currency, Chinese Yuan has greater potential for an alternative. Euro is already an alternative to USD but bad policies of EU is briing it down. Both Japanese, Germans and Russians are frugal by nature. Russians saving was theived by seizing foriegn reserves and assets. Uncle Sam has eaten the savings of Japanese &, Germans. I dont think this USD scam can continue for ever when it is backed by excessive military power and bullying. The days of stealing by war in the middle East oil rich countries have come to an end too.

    • i now refuse to use the term inflation as an excuse for excessive counterfeiting and robbery . THE ROTHS CENTRAL BANKING SYSTEM , consists of 160 shells where the pea is continually moved from shell to shell , PUTINS RUBLE is going to smash each shell with THE VALUE OF GOLD OIL AND COMODDITIES AS REAL MONEY

  2. The Ruble is backed by gold, and we will see it go higher since Russia now demands that payments for Russian-based energy be made in Rubles. The Chinese Renembi is also backed by tons of gold as well!
    Why?
    The previous privately-owned (Rothschild) Federal Reserve ‘notes’ have no tangible backing whatsoever!
    When JFK ordered that Federal Reserve Notes be replace with US Treasury-issued gold and silver certificates at around the same time he exposed the repugnancy of ‘secret societies operating in democracy’, he was assassinated within a few weeks.
    The J3w$ control the US Banking system officially since 1913, and before that with the simultaneous crash of the London Stock Market in the mid-1800’s when Mayer Rothschild bought up the collapsed stocks for pennies to the pound!
    Since the illegal ‘sanctions’ have targeted Russian citizens and their assets, this could only be accomplished if those assets and holdings were in US Dollars.
    Most US Dollars flow thru institutions that then remove incoming funds and profits from Russian investors via the US Federal (private) Reserve Banking System that are ‘sanctioned’… In other words, the US Banksters had been and would still be stealing the profits from Russian Oil & Gas profiteers who are…Russian.
    And the US IRS does a fine job making criminals out of ‘targeted individuals’ with it’s tens of thousands tax laws that every American has at one time or another inadvertently violated. They lay in wait for a computer match-up of violations vs tax returns, and this is what John McAfee warned us about when he was ‘on the run’ from malicious prosecutions by the FBI / IRS / other Alphabet Agencies, before he was ‘suicided’…
    That is why Putin made the brilliant move to use the Ruble for all payments towards foreign entities wanting to purchase Russian Energy.

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