Post
Topic
Board Economics
Re: Unusual Situation as Russia’s Ruble bounces back as world best per fiat currency
by
avikz
on 09/06/2022, 15:02:44 UTC
Quote
Two months after the Russian ruble fell below a U.S. penny, the transcontinental country’s fiat currency is the best performing currency worldwide. American economists are baffled by the “unusual situation” because a country facing stiff sanctions typically sees its fiat currency decline in value, but Russia’s ruble has done the exact opposite.
Source

Now my question is how often can we see a country's Fiat currency currency thrive despite the harsh economy in the country?

The answer is natural resources here! Russia is a part of OPEC plus countries and has one of the biggest oil and gas reserves. So now America's dream is coming true when they see EUR is dropping faster than expected. Because that's was always the gameplan of US. Russia has told ass their buyer to pay in  Rubles and as a result their buyers have started selling their euros against Rubles to pay Russia for their oil and gas bills. As a result, EUR is standing at all time low and Russia is getting the benefits of strongest Rubble ever. US is happy because EUR is weakening and UK is happy to prove that Brexit was a correct decision.