CBS: Ruble shows ‘staggering’ strength despite sanctions

Despite the introduction of numerous sanctions against Russia, the country’s national currency is gaining strength, demonstrating a “staggering” strengthening. This was reported by the CBS television network, citing interviewed financial analysts.

Since January of this year, the ruble has grown against the dollar by 45%, and as of June 28, one dollar cost 53.45 rubles. “This is an unusual situation,” said Harvard Kennedy School professor Jeffrey Frankel.

CBS writes that usually a country faced with international sanctions and a major conflict, sees the flight of investors and a permanent outflow of capital, which inevitably leads to a depreciation of its national currency. But Russia’s “unusually aggressive measures” to prevent the withdrawal of money from the country, combined with a sharp increase in fossil fuel prices, create demand for the ruble and appreciate it, the source said.

Analysts say the ruble’s resilience means Russia is partially protected from punitive economic sanctions imposed on it by Western countries, though it’s hard to say how long that protection will last.

CBS interlocutors believe that the main reason for the strengthening of the ruble is the rise in energy prices. After the start of the NWO, the already high prices of oil and natural gas rose even more. Tatiana Orlova, a leading emerging markets economist at Oxford, emphasizes that energy prices are now “sky-high”. And although due to the embargo and sanctions, there is a drop in Russian exports, the rise in prices for raw materials more than compensates for this drop, the expert clarified.

Analysts estimate that Russia earns almost $20 billion a month from energy exports, and since the end of March, many foreign buyers have complied with the requirement to pay for energy in rubles, which also led to a strengthening of the ruble.