Russian economy holding up versus sanctions et al better than many expectedAlthough doing worse than

Sep 16, 2022
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Russian economy holding up versus sanctions et al better than many expected

Although doing worse than Europeans who are suffering from the sanctions imposed on Russia as well.

R. central bank moved quickly to impose capital controls and sharply hike interest rates (20%, incentivizing Russians to keep their money in Russian banks) partially stabilized the ruble. Higher oil prices offset the Russia discount. Rising sales of energy to China, India and Turkey offset decline in sales to Europe. (Oil revenues estimated down 20%). The central bank forced companies to convert 80% of the money they earn overseas into rubles. Demand for R. currency helps prop it up. R citizens were prevented from converting more than $10k into other currencies.

= high interest rate, forced buying of the ruble, and currency near impossible to sell.

= we don't know the true exchange rate. Ruble can only really be BOUGHT in significant quantity.

= ruble appears high in value, but few would buy it, some say, unless they were forced to.
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<div>Russian economy holding up versus sanctions et al better than many expected</div><div><br></div><div>Although doing worse than Europeans who are suffering from the sanctions imposed on Russia as well. <br></div><div><br></div><div>R. central bank moved quickly to impose capital controls and sharply hike interest rates (20%, incentivizing Russians to keep their money in Russian banks) partially stabilized the ruble. Higher oil prices offset the Russia discount. Rising sales of energy to China, India and Turkey offset decline in sales to Europe. (Oil revenues estimated down 20%). The central bank forced companies to convert 80% of the money they earn overseas into rubles. Demand for R. currency helps prop it up. R citizens were prevented from converting more than $10k into other currencies. <br></div><div><br></div><div>= high interest rate, forced buying of the ruble, and currency near impossible to sell. <br></div><div><br></div><div>= we don't know the true exchange rate. Ruble can only really be BOUGHT in significant quantity. <br></div><div><br></div><div>= ruble appears high in value, but few would buy it, some say, unless they were forced to.<br></div>
Russian economy holding up versus sanctions et al better than many expected

Although doing worse than Europeans who are suffering from the sanctions imposed on Russia as well.

R. central bank moved quickly to impose capital controls and sharply hike interest rates (20%, incentivizing Russians to keep their money in Russian banks) partially stabilized the ruble. Higher oil prices offset the Russia discount. Rising sales of energy to China, India and Turkey offset decline in sales to Europe. (Oil revenues estimated down 20%). The central bank forced companies to convert 80% of the money they earn overseas into rubles. Demand for R. currency helps prop it up. R citizens were prevented from converting more than $10k into other currencies.

= high interest rate, forced buying of the ruble, and currency near impossible to sell.

= we don't know the true exchange rate. Ruble can only really be BOUGHT in significant quantity.

= ruble appears high in value, but few would buy it, some say, unless they were forced to.

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