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?
It's interesting to see how easily some people can be fooled without doing any proper research on the topic. There is no doubt that Russia has a positive budget which is fuelled by high oil and gas prices right now, but the rest of their maintenance economy is in tatters and we are still only in the very early stages of seeing this play out. Nobody wants to but roubles right now and foreign businesses are being restricted from selling assets as they flee the country after dire sanctions, so Russia can use their relatively large reserves to prop the currency up to any level they want. The central bank of Russia actually went too far in this illusion because an overly strong rouble is actually even more damaging especially in the current situation.