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7 votes
Accepted

Does Russian Ruble strengthening mean the sanctions did not hurt Russian economy?

No, it does not mean that. Currency value just reflects supply and demand for the currency. It is not a measure of how economy is performing. There can sometimes be some correlation between exchange ...
1muflon1's user avatar
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4 votes
Accepted

Why doesn't Russia buy USD to pay its external debt and avoid default?

Because Russia is effectively banned from using dollars. Also, Russia has enough dollars to finance its debt. The reason why Russia might default is that they are not allowed to use their USDs. For ...
1muflon1's user avatar
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3 votes

Will the value of ruble decrease in the long term if the sanctions against Russia are not lifted?

Many of the usual mechanisms that determine exchange rates are not working at the moment. People only buy the ruble if they must, even if ruble interest rates are high. The ruble is "artificially&...
BrsG's user avatar
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3 votes

Will the value of ruble decrease in the long term if the sanctions against Russia are not lifted?

The exchange rate depends primarily on trade and financial flows and monetary policy. As long Russia will continue to have huge trade surpluses as it has now (see data) and as long as its monetary ...
1muflon1's user avatar
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3 votes
Accepted

Which sanction against Russia creates the least side effects on Western economies: SWIFT disconnect or denying selling of government bonds?

SWIFT is basically a communication network that allows bank transitions to happen. This could potentially hurt EU a lot because EU imports 41.1% of natural gas, 26.9% oil and 46.7% coal from Russia (...
1muflon1's user avatar
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3 votes
Accepted

Did Russia peg Rubles to a Gold Standard?

No Russia is not officially on gold standard. To be on gold standard country has to use gold as fixed unit of account by setting fixed exchange rate between currency and gold, and be willing to ...
1muflon1's user avatar
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2 votes

How effective are economic sanctions on Russia?

Some sanctions can be evaded and some others are just political symbolism but overall the sanctions do hurt Russian economy. In January 2022 Russian economy grew at about 6% (see Statista). After the ...
1muflon1's user avatar
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2 votes

Can Autarky be prosperous?

I would like to know, if it is theoretically possible for a country ... to achive economic prosperity (>40,000$ gdp per capita) in the state of complete or near-complete economic isolation By your ...
1muflon1's user avatar
  • 57k
2 votes
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Why has France been hit so hard by rising petrol prices?

Why has France been hit so hard by rising petrol prices? Because restrictions on Russian oil increase world oil prices as well. As you can clearly see from the data there was sharp increase in US, ...
1muflon1's user avatar
  • 57k
1 vote

How did the SWIFT ban on Russia affect the Russian economy?

Not all Russian banks were actually banned from Swift just most commercial ones. Swift is the Society for Worldwide Interbank Financial Telecommunication. It is basically a highway for financial ...
1muflon1's user avatar
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1 vote
Accepted

Why does Putin want to be paid in rubles?

I don't fully understand why this is important for Russia. Imagine they pay him in euros. As soon as he gets the euros he can exchange them himself to rubles right? Not exactly. First the money is ...
1muflon1's user avatar
  • 57k
1 vote

Did Russia peg Rubles to a Gold Standard?

Agreed with 1muflon1. "Gold standard" means you can buy gold with Ruble with a relatively stable rate, not the other way around. Adding to this, Russians are actually forcing something ...
dodo's user avatar
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1 vote
Accepted

Does Russia now have discretion over Libor?

One mechanism would be that if Russia owns money market funds containing bank Commercial paper, any attempted sale of those holdings would decrease the market price (and increase the yield ) of bank ...
dm63's user avatar
  • 1,313
1 vote

(How) does Russia benefit if Gazprombank instead of Gazprom gets to keep the euros?

It is a way how to further evade sanctions. The trade is not done in cash and western countries froze Russian central bank assets denominated in USD and EUR (see NBC News). Gazprombank is not ...
1muflon1's user avatar
  • 57k
1 vote

Did Russia's GDP per capita really fall 38% between 2013 and 2020?

did the living standards of average Russian households decrease 38%? Not quite Here's why. For countries with a lot of imports, a large currency depreciation would have a massive impact, but.. A ...
stevec's user avatar
  • 671
1 vote

How does Russia have so much foreign exchange reserves?

Russia has been ramping up its production of oil since late 1990s after it defaulted on its debt. It has been maintaining positive trade balance since then. Also, notice in the above graph, Russia ...
london's user avatar
  • 2,010
1 vote

How does Russia have so much foreign exchange reserves?

russia uses its oil revenue to setup russia stabilization fund in 2004. The money in that fund is used to pay for national budget deficit. The foreign exchange reserve of Bank of Russia is not ...
styling's user avatar
  • 11
1 vote

Value of the ruble in year 1825

This website (in Russian) states that, in 1825, you could sell 1 Imperial Ruble and get 0.72 US dollars. I don't know Russian so I cannot tell the source of that data. Those 0.72 US dollars in 1825 ...
luchonacho's user avatar
  • 8,591

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