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They also had existing foreign currency reserves (far more than the foreign currency still flowing into the country) to sell for rubles to prop up the currency
by notahacker 5y ago
They also had existing foreign currency reserves (far more than the foreign currency still flowing into the country) to sell for rubles to prop up the currency (easier to to force up the price for rubles when most people arent allowed to sell theirs)
They're expected to run out of accessible foreign currency reserves soon if they continue at this rate though, and the head of the Russian Central Bank tasked with actually making the trades is not optimistic about Russia's economic outlook for this quarter...
- sam_lowry_ 5y ago> They also had existing foreign currency reserves Over half of those are frozen due to sanctions, but even the rest is hard to use, because any transaction may be blocked out of abundance of zeal. That's why capital controls are used to keep the official rate at pre-war level. Aside from restrictions on selling the ruble, Russian state forces all businesses that are paid in foreign currencies to immediately sell 70%. This increases the demand for ruble.