The Russian ruble: Despite the difficulties, it reaches its highest level in 7 years

 what is the Rissian ruble?

The Russian ruble is the second most traded currency in the world after the US dollar. The Russian ruble represents the official currency of Russia. It is considered one of the oldest currencies in the world. It was first introduced in 1795 when Russia was still part of the Ottoman Empire. The ruble is also supported by the government.

7 years ago the Russian ruble at its highest level :

 The exchange rate of the Russian ruble rose to its highest level since May 2015 with an increase of about 1.3% to reach about $52.3.

This astonishing appreciation of the ruble led to the imposition of Western and US sanctions following the Russian invasion of Ukraine.

In Russia, the main interest rate in the country doubled by more than 20% from the previous 9.5%. In the months following the invasion of Ukraine, the value of the currency improved to the point that it lowered the interest rate three times to reach 11% at the end of May

The stability of the value of the Russian ruble is the record revenues that Moscow derives from oil and gas, especially after the clear and remarkable rise in the price of energy. The largest importer of Russian gas

In a report by the Centers for Research on Energy and Clean Air, which is a research organization based in Finland, the gains of the Russian Federation rose to about 98 billion dollars in revenues from fossil fuel exports.

Max Hey from the Foreign Policy Research Institute also acknowledged that the Russian ruble exchange rate exists because Russia is achieving current account surpluses from foreign currencies, as he clarified regarding the revenues, which are mostly in dollars and euros through the complex ruble mechanism, and added that despite Russia’s pledges to stop importing gas Russia and selling smaller quantities to some countries, but they still sell large quantities of oil and gas at high prices, which brings a large surplus in the current account.

The tightening measures implemented by the Russian authorities around investors also contributed to the influx of funds from exports, which made the Russian ruble stronger and stronger.

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