Despite non-payment
Russian ruble hits seven-year high
The ruble has reached a new high against the leading currencies dollar and euro. Photo: Karl-Josef Hildenbrand/dpa
© dpa-infocom GmbH
The ruble has been recovering for months and has now doubled from its low. According to experts, the high oil price plays a role in this.
Unimpressed by the Russian default earlier in the week, the national currency ruble climbed to a new high against the key currencies dollar and euro on Tuesday. «For the first time since May 28, 2015, the dollar has cost less than 52 rubles. For the first time since May 26, 2015, the euro has cost less than 55 rubles,” the Interfax news agency said on Tuesday after the Moscow stock exchange closed.
The agency’s currency experts cite the forthcoming tax payments in Russia and the high oil price as the reasons for the ruble’s strength.
After the ruble fell sharply shortly after the start of the war of aggression ordered by Kremlin chief Vladimir Putin, it has now been on a recovery course for months and has now reached twice its low. Even Russia’s technical default, as determined by the rating agency Moody’s on Tuesday, had no effect on the ruble’s rise. Admittedly, this is not a typical state bankruptcy, but rather technical problems with the transfer of debt payments, which the West is blocking.
Drastic restrictions on foreign exchange transactions
However, the background to the strength of the ruble is also the drastic restrictions on foreign exchange transactions by the Russian central bank and the western sanctions, which primarily affect Russian imports. Because while Russia’s income from the export of oil and gas continues to bubble, imports in Russia have shrunk to less than half – partly due to the Western embargo on high-tech, machinery, armaments and luxury goods. As a result, the need for foreign exchange has also fallen significantly.