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So in other words, Russia is artificially inflating the value of its currency in a way that doesn't represent (misrepresents) its value to the rest of the world
by TameAntelope 4y ago
So in other words, Russia is artificially inflating the value of its currency in a way that doesn't represent (misrepresents) its value to the rest of the world and indeed to other Russians?
This is what people call "fraudulent".
- snake_doc 4y agoIt is categorically incorrect to keep referring to the policies as fraudulent. Russian’s enacted capital controls protects the value of the ruble internally. Had they not enacted capital controls and the central bank not intervened, the Russian people’s existing ruble would depreciate much faster. These are protective measures against the effects of sanctions, with real positive benefits domestically that regular Russians enjoy. It’s not fraudulent because domestic Russians mostly benefits from the propped up currency. Without it, domestic economics would plummet and regular Russians would face harsh economic outcomes. The central bank works hard to prevent that outcome.