Home News The Russian ruble has peaked in the last two years, despite EU...

The Russian ruble has peaked in the last two years, despite EU efforts to step up sanctions

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On Wednesday, the US dollar reached the equivalent of 66.30 rubles – the highest level of the Russian currency recorded since March 2020, according to Reuters records.

On the same day, European Commission President Ursula von der Leyen proposed a gradual embargo on Russian oil as part of a new sanctions package targeting Sberbank, Moscow’s largest bank.

The upward trend in the ruble is in stark contrast to the currency’s situation in early March, when it fell sharply due to a wide list of sanctions imposed by the United States and its allies.

The Kremlin has countered the blows to its financial system by raising interest rates, banning the sale of shares to foreigners and imposing payments on rubles for gas. The power plant has also implemented strict controls and ordered foreign-currency exporters to convert 80 percent of foreign earnings into rubles, Insider journalist Harry Robertson reported in April.

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“Russia’s efforts to support the ruble appear to be working despite Western sanctions aimed at cutting off Kremlin access to foreign resources and paralyzing the nation’s ability to finance its war against Ukraine,” New Zealand brokerage firm BlackBull Markets wrote in a statement. recently published note.

Despite the ruble’s power, Russia’s economy is preparing for the biggest contraction in 30 years, amid strong Western sanctions.

Various Russian government agencies estimate that Russia’s gross domestic product will fall by 8 percent to 10 percent in 2022, according to Interfax, citing statements by former Moscow Finance Minister Alexei Kudrin last month. By comparison, the World Bank expects Russia’s economy to contract by 11.2% in 2022.

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