Russian Ruble Taps 7-Year High Against the US Dollar — Economist Says ‘Don’t Ignore the Exchange Rate’

Recent news reports have detailed that the Russian fiat ruble is the world’s strongest performing currency, and the article explains that American economists are puzzled by that trend. On Monday, the Russian ruble rose to 55.47 to the dollar, its highest appreciation since 2015. While many dismiss the ruble’s exchange rate, Charles Litchfield, deputy director of the Atlantic Council’s Center for Geoeconomics, published the following editorial.” Don’t Ignore the Exchange Rate. How a Strong Ruble Can Shield Russia”

Russian Ruble Soars – “Putin Has the Last Laugh,” Reportedly

Financial sanctions against Russia do not appear to have affected the transcontinental country as much as Western media have portrayed in the past few months. On Monday, theRussian ruble wasat a new price high against the U.S. dollar, the highest since 2015. A number of economists and analysts have reported that Russia’s financial books are cooked and that most of the ruble’s appreciation is just smoke and mirrors. One Youtuber claims that although the ruble appears strong, most of its strength is reinforced by manipulation.

Youtuber Jake Broetold his 146,000 subscribers that “the Russian economy is currently in steep decline, inflation is high, unemployment is rising, wages are falling, and the GDP of the Russian economy is collapsing.”But Blow’s assertion could also be made about the U.S., where the U.S. economy appears to be headed for a recessionand inflation is the highest it has been in 40 years. Inflation is the highest in 40 years, productivity is declining, and unemployment insurance claims are rising. And the U.S. economy’s GDPin the first quarter of 2022 shranksignificantly.

Blow says the ruble looks stronger because of manipulation by the Russian government and central bank. But make no mistake, U.S. politicians and the Federal Reserve can also be accused of manipulation and spreading unreliable information. Other reports that do not utilize Blow’s biased argument show that sanctions against Russia have failed miserably: areportpublished by armstrongeconomics.com

states that the Russian oil boycott is not working and that “Putin now has a higher price range for more He is having the last laugh because he is selling more oil.”

Martin Armstrong, author of Armstrongeconomics.com, adds:

In April,Russian oil exports increased by 620,000 b/d to 8.1 million b/dIndia (+730,000 b/d) and Turkey (+180,000 b/d) offset international embargoes, and the EU remains the largest importer despite a sharp drop in shipments The IEA reported that Russian oil exports increased by more than 50% y/y in the first four months of the year – a boycott completely West backfired and strengthened the Russian economy.

Report shows India buying oil from Russia, refining it, and then selling it to Europe for profit – EU Commission President predicts oil sanctions could backfire

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In addition Russia has obscured its financial dealings as it announced that monthly figures on government spending will not be disclosed in the futureThe Russian Ministry of Finance told the press that the country needs to “minimize the risk of triggering additional sanctions.”Bitcoin.com News reported two weeks ago that a number of countries are buying oilfrom the Russian Federationin defiance of Western sanctions. For example, India is reportedly getting oilfrom Russia, refining it, and then selling it to Europe for a profit.

China is also buying oil from Russia, forcing many refineries to buy oil from transcontinental countries. For example, ISAB, Italy’s largest refinery, has been forced to procure oil from Russia because its bank credit has stoppedChina has been the largest single purchaserof Russian crude since 2021, getting on average 1.6 million barrels a day from Russia, according todata. Meanwhile, in Europe, oil is running out as the U.K. could face massive power grid outages, according towarning. The financial newspaper “The Economist” (79) claims that “Europe is suffering from a serious energy price shock” (80). Europe is suffering from “severe energy price shocks”

Two weeks earlier, Charles Litchfield, deputy director of the Atlantic Council’s Center for Geoeconomics, published aneditorialsaying that the ruble’s exchange rate should not be rejected. According to Litchfield’s op-ed, Western governments insist that the Russian economy will eventually collapse, but he believes that things need to be reassessed. “The Russian financial system may have withstood the initial shock – but the fall in gross domestic product (GDP) and crippling input shortages, they argued, would eventually force Moscow to de-escalate as the war entered its shattering phase – but it is time to reassess this stance,” Lichfield Lichfield writes.

Officials predict energy sanctions could backfire and may not always work Predicting that they may backfire, European Union Commission President Ursula von der Leyen explained how energy sanctions could backfire in a May interview. Von der Leyen said that if countries “immediately” sanction Russian oil imports, Putin “could take the oil he doesn’t sell to the EU to the world market, where prices would rise and [he] could sell it for more.”

What do you think about the Russian Ruble’s market performance and your theory as to why? Do you think the Russian ruble is supported by state officials or do you think fiat money is strong? Let us know what you think about this topic in the comments section below.

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