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The ruble is so strong because russia cannot spend money anymore because of sanctions. I'm living in Germany, the biggest problem is the inflation caused by en

The ruble is so strong because russia cannot spend money anymore because of sanctions. I'm living in Germany, the biggest problem is the inflation caused by energy prices. It's still lower than in the US or the UK, but people are starting to struggle. Business is going well as Germany is mostly export-driven, but companies don't want to give out rises.

adammarples 4y ago
The rouble is strong because the Russian state is burning through its foreign reserves to backstop it.
- JumpCrisscross 4y ago
  > the Russian state is burning through its foreign reserves to backstop it Half of Russia’s reserves are sanctioned. They’re earning bumper returns on their energy exports, mainly oil, despite the ~20% discount they’re forced to offer. And they’ve been seizing exporters’ hard currency. They say they’re down 10% (20% sanctions adjusted) from February [1]. That’s a decrease, but it’s not burning. (Obvious disclaimer: they’re probably lying.) [1] https://tradingeconomics.com/russia/foreign-exchange-reserves https://tradingeconomics.com/russia/foreign-exchange-reserve...
  - spywaregorilla 4y ago
    > They say they’re down 10% (20% sanctions adjusted) from February [1]. That’s a decrease, but it’s not burning. (Obvious disclaimer: they’re probably lying.) That sounds like burning to me, even at the improbable 10% level.
    - JumpCrisscross 4y ago
      > sounds like burning to me, even at the improbable 10% level Fair enough. It’s a steeper drop than I expected before looking it up.
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tantaman 4y ago
I think it's that Russia is pegging the Ruble to a fixed value of gold and requiring all nations importing from Russia to use Rubles to buy their Russian exports. The only way to get Rubles to buy your imports is to give Russia gold at the rub-gold exchange rate set by Russia. This peg, iiuc, is one-way. As in, Russia gives you X rubles for Y gold. You can't, however, redeem your rubles the other way around. So... is the Ruble really strong? idk.. it all sounds very artificial given exchange is only in one direction.
- tantaman 4y ago
  although looking at the latest google results today, it seems like none of the top results agree on anything that is going on anymore. Hopefully I can track down my original source.

adammarples 4y ago

The rouble is strong because the Russian state is burning through its foreign reserves to backstop it.

JumpCrisscross 4y ago
> the Russian state is burning through its foreign reserves to backstop it Half of Russia’s reserves are sanctioned. They’re earning bumper returns on their energy exports, mainly oil, despite the ~20% discount they’re forced to offer. And they’ve been seizing exporters’ hard currency. They say they’re down 10% (20% sanctions adjusted) from February [1]. That’s a decrease, but it’s not burning. (Obvious disclaimer: they’re probably lying.) [1] https://tradingeconomics.com/russia/foreign-exchange-reserves https://tradingeconomics.com/russia/foreign-exchange-reserve...
- spywaregorilla 4y ago
  > They say they’re down 10% (20% sanctions adjusted) from February [1]. That’s a decrease, but it’s not burning. (Obvious disclaimer: they’re probably lying.) That sounds like burning to me, even at the improbable 10% level.
  - JumpCrisscross 4y ago
    > sounds like burning to me, even at the improbable 10% level Fair enough. It’s a steeper drop than I expected before looking it up.
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tantaman 4y ago

I think it's that Russia is pegging the Ruble to a fixed value of gold and requiring all nations importing from Russia to use Rubles to buy their Russian exports. The only way to get Rubles to buy your imports is to give Russia gold at the rub-gold exchange rate set by Russia. This peg, iiuc, is one-way. As in, Russia gives you X rubles for Y gold. You can't, however, redeem your rubles the other way around. So... is the Ruble really strong? idk.. it all sounds very artificial given exchange is only in one direction.

tantaman 4y ago
although looking at the latest google results today, it seems like none of the top results agree on anything that is going on anymore. Hopefully I can track down my original source.