Recent news reports detailed that Russia’s fiat currency, the ruble, was the best-performing currency in the world and the articles explained that US economists were puzzled by this trend. On Monday, the Russian ruble rose to 55.47 to the dollar, the biggest rise since 2015. While many dismissed the ruble’s exchange rate, Charles Lichfield, deputy director of the Atlantic Council Center for Geoeconomics , published an editorial titled, “Don’t Ignore the Exchange Rate: How a Strong Ruble Can Protect Russia.”

Russian Ruble Climbs Higher – Report Says ‘Putin Will Have the Last Laugh’

The financial sanctions against Russia are apparently not affecting the transcontinental country as much as Western media have portrayed in recent months. On Monday, the Russian ruble hit a high against the US dollar and it was the biggest rise since 2015. Numerous reports from economists and analysts said that Russia’s financial books were cooked and that the strength of the ruble was simply smoke and mirrors. A Youtuber claims that although the ruble looks strong, most of its strength is enhanced by manipulation.

Russian Ruble Hits 7-Year High Against US Dollar - Economist Says
USD/RUB chart on June 21, 2022. A wick candle indicates that the ruble has peaked well above the all-time high of 55.47 per dollar in the 155 range.

YouTuber Jake Broe told his 146,000 subscribers that “the Russian economy is collapsing right now, inflation is high, unemployment is rising, wages are falling, the GDP of the Russian economy is collapsing.” However, Broe’s arguments could also be said about the United States, as the US economy seems to be heading into a recession, inflation is the highest in 40 years, US unemployment claims have increased while productivity is down and the GDP of the US economy has shrunk. significantly in Q1 2022.

Broe says the Russian government and central bank are manipulating things, which has made the ruble look strong. Yet, it is arguable that US politicians and the Federal Reserve could also be accused of manipulating and disseminating unreliable information. Other reports that don’t take advantage of Broe’s biased talking points indicate that sanctions against Russia have failed miserably. A report by armstrongeconomics.com says the Russian oil boycott is not working and “Putin has the last laugh as he is now selling more oil at a higher price.”

Armstrongeconomics.com author Martin Armstrong added:

In April, Russian oil exports rose by 620,000 bpd to 8.1 million bpd. India (+730,000 bpd) and Turkey (+180,000 bpd) helped offset the international embargo, while the EU remained the top importer despite a sharp drop in shipments. The IEA reported that Russian oil exports rose by more than 50% year-on-year in the first four months of the year. The boycott completely backfired on the West and helped strengthen the Russian economy.

Report Shows India Buys Oil From Russia, Refines It, Then Sells It To Europe For Profit – European Union Commission President Predicts Oil Sanctions Could Backfire

Additionally, Russia kept its financial dealings murky as the country announced that monthly government spending figures would no longer be disclosed. The Russian Finance Ministry told reporters that the country should “minimize the risk of imposing additional sanctions”. Bitcoin.com News reported two weeks ago that many countries are disregarding Western sanctions and buying oil from the Russian Federation. For example, India would get oil from Russia and once the oil is refined, the country would sell it to Europe for profit.

China also buys oil from Russia and a number of oil refineries are forced to buy oil from this transcontinental country. For example, Italy’s largest refinery, ISAB, was forced to source crude oil from Russia because banks stopped extending credit to it. China has been the biggest buyer of Russian oil since 2021, and data shows the country gets an average of 1.6 million barrels a day from Russia. Meanwhile, oil is becoming scarce in Europe as warnings indicate Britain could face massive grid outages. Financial newspaper The Economist insists Europe is suffering ‘a severe energy price shock’

Also, two weeks ago, Charles Lichfield, deputy director of the Atlantic Council’s Center for Geoeconomics, published an op-ed saying that people shouldn’t reject the ruble exchange rate. Lichfield’s article says Western governments have claimed Russia’s economy will eventually fail, but he thinks things need to be reassessed. “The Russian financial system may have withstood the initial shock – but a slump in gross domestic product (GDP) and crippling input shortages, they claimed, would force Moscow to eventually deescalate as the war entered a difficult phase – But it is time to re-evaluate this position,” Lichfield wrote.

Government officials have predicted that energy sanctions could backfire and not necessarily work. In an interview in May, European Union Commission President Ursula Von Der Leyen described how energy sanctions could backfire. Von Der Leyen said that if countries “immediately” sanction imports of Russian oil, Vladimir Putin “could bring the oil he does not sell to the European Union to the world market, where prices will rise, and [he will] sell it for more.

Keywords in this story

Bank of Russia, Central Bank, Charles Lichfield, China, Conflict, Crude Oil, Cut Rate, Economy, EU, Gas, India, Interest Rate, Martin Armstrong, OIL, Peace Talks, Ruble, Ruble, Ruble Crash, ruble falls, ruble plunges, ruble rises, ruble strength, russia, russian bank run, russian ruble, russian bank run, russian sanctions, sanctions, Ukraine, Ursula Von Der Leyen, Vladimir Putin, war, allies Westerners, Youtuber Jake Broe

What do you think of the performance of the Russian ruble market and the theories as to why it is doing so well? Do you think the Russian ruble is supported by the country’s officials or do you think the fiat currency is strong? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is the News Manager at Bitcoin.com News and a fintech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written over 5,000 articles for Bitcoin.com News about disruptive protocols emerging today.




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