Russian currency Ruble regains value despite harsh sanctions by the West

Moscow: – The West has announced harsh sanctions against Russia after the Russian invasion of Ukraine. The sanctions triggered a massive decline in the value of the Russian currency Ruble. The western leadership even patted their backs for this. But this effort of the western countries to target the Russian economy has been busted and the Ruble has returned to a strong position.

The value of Ruble had drastically reduced against the USD following the start of the conflict in February. In the first week of March, Ruble was trading at 150 Rubles to a USD. But only within a month the Russian currency successfully recovers to the value before the Ukraine conflict. In the transactions recorded on Thursday, Ruble was trading at 75 Rubles per USD. As per the Russian analysts, this recovery of the Ruble is a slap across the face of the western countries, including the United States.

The Russian media claimed that swift movements and the harsh decisions of the Russian central bank are the reasons behind this recovery of the Ruble. The Russian central bank banned the sale of Russian assets by any foreigner in the last month. This was followed by instructions to the exporters to purchase cash currency. Russian companies were instructed to convert 80% of their foreign currency holdings into Ruble. After that, the Russian President issued an ordinance making it mandatory for the non-friendly countries to transact for oil exclusively in Ruble.

While these measures were being implemented, the oil purchase by the European countries was in progress. Experts claimed that Russia had the upper hand in the trade, and Ruble benefited from this. Although the European Union has resented transactions in Ruble for Oil, Hungary and Slovakia have expressed willingness to transact in Ruble. Only a few days ago, Poland had cited the strengthening of the Ruble while claiming that the sanctions against Russia are worthless. Therefore, a possibility of the Ruble becoming stronger is being predicted.