5 ms·
It didnt stabilize, only an illusion. The government introduced strict currency controls forcing business to hold rubles. Also foreign stock holders are not all
by trentearl 4y ago
It didnt stabilize, only an illusion. The government introduced strict currency controls forcing business to hold rubles. Also foreign stock holders are not allowed to sell stocks and covert to dollars. The price listed isnt real because the market isnt real, I imagine buying an iphone in Moscow right now would cost much more than the rate would lead you to believe.
- rich_sasha 4y agoThats exactly right. Who is buying and selling roubles? Yes, there are apparently some transactions, since there is a price, but it’s hardly a market controlled by supply-demand. Russian exports have always been priced in USD or other foreign currencies; Russian companies don’t want to get roubles, it seems. Similarly, with imports, companies probably need to pay in whatever non-rouble way possible, I can’t imagine any serious exporter would take roubles. Companies receiving foreign currency are forced to exchange them immediately to roubles according to a central bank’s rate. It’s a theatre, not a market, and so the price is mostly anything.