Russian ruble becomes world’s best performing currency, despite sanctions

i24NEWS

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One hundred rubles banknote is pictured in front of a one US dollar banknote, Gelsenkirchen, Germany, Monday, April 25, 2022.
AP Photo/Martin MeissnerOne hundred rubles banknote is pictured in front of a one US dollar banknote, Gelsenkirchen, Germany, Monday, April 25, 2022.

Ruble firms 30% against dollar

Russia’s ruble strengthened past 57 to the dollar on the Moscow Exchange for the first time since March 2018, despite Russia currently being the world’s most sanctioned country - surpassing Iran, North Korea and Syria.

The currency also showed the highest numbers against the euro in seven years.

The ruble was steered by capital controls imposed by the country’s authorities late February following Russia’s invasion of Ukraine and unprecedented international sanctions. Despite the latest slight relaxation in capital controls the ruble continues to strengthen.

This trend raises concerns about the negative impact on Russia’s budget revenue from exports. Russia cut the proportion of foreign currency revenue that exporters are obliged to convert into rubles from 80% to 50%. 

Earlier on Monday, Russian President Vlamidir Putin said at a meeting with Belarus leader Alexander Lukashenko that the Russian economy is withstanding the impact of foreign sanctions “despite all difficulties,” mentioning special efforts that the country’s authorities had to take. 

"All that is happening requires special attention from the government’s economic block, special efforts, and overall, I want to stress, those efforts produce a positive effect," Putin said.

That same day Ukraine’s President Volodymyr Zelensky spoke to the audience at the World Economic Forum in Davos urging global business leaders to put “maximum” sanctions on Russia. 

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