Ruble rising in the face of sanctions

Ruble rising in the face of sanctions

The Russian ruble has been gradually strengthening against the US dollar and euro, making gains for the sixth day straight on Thursday. The ruble plunged to historic lows amid Western sanctions after the country launched its military operation in Ukraine.

At the opening of trading on the morning of March 17, the Russian currency rose by 2.77% against the greenback, to 105 rubles per dollar. It also gained 1.83% against the EU’s currency, trading at 115.5 rubles per euro.

The ruble collapsed earlier this month as unprecedented sanctions hit the Russian economy, dropping to record lows of 132 rubles per dollar and 147 rubles per euro on March 7. In mid-February, the currency’s exchange rate was around 75 rubles per dollar and 85 rubles per euro.

Analysts say that further strengthening of the ruble is being held back by the prospect of default on Russia’s foreign debt. According to Finance Minister Anton Siluanov, payment on two outstanding sovereign Eurobonds has been made, but there are risks that the payment will not reach the final recipients, as Russia’s foreign currency holdings are frozen by sanctions.

A set of measures to stabilize the exchange rate has been introduced by the Russian authorities. The Central Bank raised the key interest rate to a record 20% per annum to stop capital outflows from the banking system, withdrawal of dollars from accounts has been strictly limited, and restrictions on cross-border capital movements were introduced over the past month.

The next meeting of the Central Bank is scheduled for Friday, March 18, when a decision whether to further raise the key rate will be made. However, analysts say a hike is unlikely, as the regulator needs more time to assess the impact of sanctions and Russian countermeasures.

For more stories on economy & finance visit RT's business section

Source: www.rt.com

The last notes - Экономика

most read news

#Экономика

Germany may face shortages of such staples as toilet paper and cardboard if Russian gas supply dwindles in the coming months, German outlet Zeit Online reported on Wednesday.Operating paper plants may
подробнее...

Pay rises in Britain could fall behind inflation by almost 8% later this year, which will be the biggest fall in real wages for 100 years, the Trades Union Congress (TUC) said in a report published on
подробнее...

The EU is planning to increase liquefied natural gas (LNG) imports from Nigeria amid concerns that supply from Russia may be cut, according to the deputy director general of the European Commission’s
подробнее...

The business climate has substantially worsened in Germany, with industries feeling increasingly concerned about the coming months, according to a survey by a German think tank released on Monday.
подробнее...

Twitter operated at a loss in the second quarter and suffered a decline in revenue from a year earlier, reflecting struggles that the company blamed partly on its pending sale to billionaire Elon
подробнее...

The Chinese currency the yuan outperformed the euro by trading volume on the Moscow Exchange (MOEX) for the first time on record, trading data from Friday shows.According to the data, the trading
подробнее...

Japanese companies are no in a hurry to quit the Russian market, amid fears of being unable to return and having to find new suppliers, the Japan Times reported this week, citing a survey from the
подробнее...

The EU will allow transactions needed for Russian state-owned companies to sell oil to third countries, the EU Council said in a statement on Thursday.“With a view to avoid any potential negative
подробнее...

The Ukrainian government has moved to delay payments on foreign debt for two years, the country’s media reported on Wednesday. The restructuring will have to be approved by the creditors first, the
подробнее...

Ukraine’s state-run energy company Naftogaz has defaulted on its foreign debt, the firm announced on Tuesday.Naftogaz was unable to make payments on Eurobonds before a grace period expired, the
подробнее...

The German government and energy major Uniper are reportedly nearing an agreement under which the state will inject more than €5 billion ($5.1bn) into the business. The total commitment is likely to
подробнее...

The Russian Finance Ministry has announced a return to the public debt market by issuing a limited amount of OFZs, ruble-denominated sovereign bonds, in September, Deputy Finance Minister Timur
подробнее...

China’s C919 narrow-body jet, the country’s first domestically designed commercial passenger aircraft, is nearing certification, having successfully passed test-flight tasks, state-owned manufacturer
подробнее...

The EU has blocked a proposal to impose sanctions on Russian titanium producer VSMPO-AVISMA, the Wall Street Journal (WSJ) reported on Thursday.According to the report, the decision was made after
подробнее...

Cargo shipments via Russia’s Northern Sea Route in the first half of this year were 5% higher than in the same period of 2021, Russian Deputy Prime Minister Alexander Novak said on Monday.“In 2021,
подробнее...

Inflation in Britain accelerated at a faster pace than expected in June and hit 9.4% year-on-year, the highest increase since February 1982, according to data released by the Office for National
подробнее...

EU energy ministers have agreed on an unprecedented plan that will see member states voluntarily slash their gas consumption by 15% from August until next spring. The deal does come with exemptions
подробнее...

Creditors of Ukraine’s state-owned energy company Naftogaz have rejected the firm’s request for a two-year debt payment freeze, the country’s media reported on Monday.Naftogaz made the proposal
подробнее...