The leading financial information website Safe Trade Binary Options has confirmed that months after Moscow invaded Ukraine, the Russian ruble has bounced back to a position of strength, despite punishing economic sanctions remaining in place.
On the day of the invasion the ruble was trading around 84 to the U.S. dollar. That figure had plummeted by 70% at the beginning of March as major Russian banks were locked out of the SWIFT financial messaging system and other sanctions were announced.
However, while the war continues to dominate headlines and Russian remains frozen out of the global stage with severe economic sanctions in place, the ruble has quietly recovered its value.
New analysis carried out by Safe Trade Binary Options shows that the ruble was fast to gain back lost ground. Russia’s central bank substantially boosted its benchmark interest rate on February 28 to shore up the currency and avoid a financial crisis. This fact action meant the ruble was almost back to pre-war levels by the end of March.
Safe Trade Binary Options spokesperson Saqib Iqbal notes, “Many may be surprised to hear about the quiet, rapid recovery of the ruble when much was made of its downfall at the start of the war in Ukraine.
“Western sanctions limited the Russian central bank’s capacity to sell reserves denominated in dollars and Euros to boost the ruble’s value. However, exemptions in those sanctions allowed Europe to continue purchasing Russian energy, ensuring that dollars and Euros continued to flow. Just a few months after the ruble’s value plummeted to less than one US cent, Russia’s currency has staged an incredible comeback.
“Energy sales are playing a key role in this strength. While the gas pipeline to Europe remains shut off, Russia has quietly brokered deals with several other foreign buyers. When you consider that Russia earns over $20 billion every month from energy exports, it’s significant that some of those buyers have agreed to pay for energy in rubles, helping the currency’s value to rise.”
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