Ruble-Rebound: US sanctions failed in front of Ruble, did Putin use India as a weapon? Ruble-Rebound: US sanctions failed in front of Ruble, did Putin use India as a weapon?

0
2
 Ruble-Rebound: US sanctions failed in front of Ruble, did Putin use India as a weapon?  Ruble-Rebound: US sanctions failed in front of Ruble, did Putin use India as a weapon?


Photo:FILE Ruble Vs Dollar

Highlights

  • Ruble becomes world’s best performing currency against dollar
  • The Indian rupee is falling against the pound euro, while the Russian ruble is at a new peak.
  • The price of the Russian ruble fell to 134 on March 12

Ruble-Rebound : More than 1,300 sanctions have been imposed on Russia by the US and Western countries since the war with Ukraine began on February 24 this year. The intention of the countries of the West behind these sanctions was to weaken Russia. The ban showed its effect in the initial phase but soon the dice were turned.

Despite sanctions and challenges, it has become the world’s best performing currency against the dollar this year. Today the Russian ruble has emerged as the strongest currency in the world. While the Indian rupee is falling against the dollar with the pound euro, the Russian ruble is at a new peak.

Ruble

Image Source : FILE

Ruble

Ruble became stronger than last year

Russia is the world’s leading oil and gas producer. Thus, after the start of the Ukraine war, Western countries were the first to impose sanctions on Russian oil and gas, as well as exclude the Russian ruble from the international SWIFT payment system. The Russian currency collapsed from a sudden blow. On February 19, just before the war, the Russian currency was worth 77 rubles against 1 dollar. At the same time, on February 25, just after the start of the war, it became 83 rubles. On March 12 the price of the Russian ruble fell to 134. But by July, the ruble made a great recovery and climbed to its highest level of 52 rubles. Today, on September 17, it costs 59 rubles, which is about 20 percent less than the price of 72 rubles on September 17 last year.

The West told these steps of Russia clever

As soon as the sanctions were imposed, Russia first started trying to save foreign exchange reserves. Russia prohibited its people from spending ruble to buy foreign currency. US Secretary of State Antony Blinken called Russia’s move a cunning. Due to these steps of Russia, a large part of its foreign exchange reserves were frozen. But it is not correct to say that the ruble rose because of this, because at one time countries like Argentina and Turkey were also forced to take similar steps.

Success achieved by trading in ruble

Russia took another step to secure its currency. European Union countries that bought natural gas from Russia were demanded to pay the bill in rubles instead of dollars or euros. Germany, one of the biggest buyers of Russian state-owned Gazprom, has already agreed to pay in rubles. This meant that buyers were going to need more rubles. Due to this the demand for the ruble increased and its price started increasing.

Did Putin use India?

When the war started, crude oil was around $ 85, but in the first few days of the war, crude oil reached $140. This step was difficult for countries like India which need huge amount of energy. India, which was facing inflation, then got an opportunity to import cheap oil from Russia. But Russia also had the advantage in this cheap oil. Because Russia, isolated from the world, found a buyer of oil, while the payment was in rubles, it helped to strengthen the currency. Some critics called it a Russian trick and using India as a weapon, but in reality this cheap oil has proved to be a profitable deal for India.

Latest Business News

function loadFacebookScript(){
!function (f, b, e, v, n, t, s) {
if (f.fbq)
return;
n = f.fbq = function () {
n.callMethod ? n.callMethod.apply(n, arguments) : n.queue.push(arguments);
};
if (!f._fbq)
f._fbq = n;
n.push = n;
n.loaded = !0;
n.version = ‘2.0’;
n.queue = [];
t = b.createElement(e);
t.async = !0;
t.src = v;
s = b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t, s);
}(window, document, ‘script’, ‘//connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘1684841475119151’);
fbq(‘track’, “PageView”);
}

window.addEventListener(‘load’, (event) => {
setTimeout(function(){
loadFacebookScript();
}, 7000);
});



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here