Phil Rosen – Business Insider May 11, 2022
- The Russian ruble is the world’s top performing currency in 2022, as it’s up 11% against the dollar.
- Amid wartime sanctions, Moscow has imposed capital controls to prop up its economy and currency.
- But currency traders are about to stop using the onshore exchange rate for some transactions.
The Russian ruble has turned into the world’s best-performing currency this year, as its onshore rate is up more than 11% against the US dollar so far in 2022.
The ruble is the biggest gainer among 31 major currencies, according to data tracked by Bloomberg, and has overtaken the Brazilian real, which is up 9% this year.
But the ruble’s advance has come after Moscow imposed a slate of capital controls to prop up the economy to offset Western sanctions for its war on Ukraine. That means few investors are able to take profits from the currency rally out of Russia.
The capital controls are in addition to Russia demanding ruble-payments for natural gas supplies from European nations, as well as forcing exporters to sell foreign-exchange holdings.
Nonetheless, the success of the Kremlin’s artificial market maneuvers has outperformed those of other nations like Argentina and Turkey when they attempted similar measures.
There IS Good News, but you have to live in Mother Russia to benefit from it.
Next year in St. Petersburg!
SHOULD HAVE ALREADY BEEN
50 YEARS AGO WHEN THEY
SPREAD THEIR GOLDEN
TSHERVONEZ
Well, well, well Russia and the world just found out the western system of exchange was some elaborate screwjob trick of the banksters.
When Russia got banned from SWIFT they said – sure we will sell you oil but in Rubles. The western nations balked at such a preposterous idea – how dare you demand payment for oil in your currency.
But Russia had no other choice so they stuck to their guns.
Now the Ruble is soaring.
Ha ha ha …. AHA!
BTW – Russia ought to peg to gold and the world capital will flee to Russia.
For the past several decades everyone has been looking for a safe haven – so they don’t lose their money due to inflation.
The stock market bubble is where most of the money went.
If your bank pays 0.05% on your deposits, and inflation is 2-20% as it is now, then you are losing big.
So you are forced into risk assets like junk bonds or stocks.
Junk bonds are crashing, so are stocks, so are bonds. Inflation is 10-15%. Bank deposits are still near all time lows less than 1%. Even CDs are nothing.
So what to do with your hard earned money?
Cryptos? They are getting hammered/wiped out.
Gold and silver already peaked and now are going sideways and down.
In a deflationary crash the only safe place is cash, but we still have inflation, so right now there is no safe place to park your money – so if some nation invented a place the world would go there.