Despite strong psychological maneuvers and discouraging sanctions by the United States and Western powers in the wake of the Ukraine war, the Russian currency rouble has won a war of stability against the dollar, proving that it is capable of conducting surveys in all kinds of difficult situations.
The war in Ukraine has entered its third month. War always bring tough situation for both the weak and strong parties. Two months is a long time, even the strongest economy in today’s world can not bear the cost of war for so long and it has run out of steam, but surprisingly for two months to impose full-scale war on Ukraine and according to a report, despite the huge expenditures, the Russian economy is largely stable. The Russian currency, the rouble, is also competing against the dollar, and the rouble has maintained its lead in the economic war.
When Russia invaded Ukraine, Ukraine was not the only weak state in the competition. Although Russia’s target was Ukraine, as soon as the war started, all of Ukraine’s Western allies, including the United States, came forward. Ukraine is not a member of the Western military alliance NATO, nor does it have a bilateral military cooperation agreement with the United States.
That is why the Western powers, despite their strong opposition to Russia and their support for Ukraine, have no legitimacy to come to the fore and fight alongside Ukraine against Russia. Various trade, economic and military sanctions are being used to force it, But despite all the measures, Russia has not been able to retreat from the military arena nor has it been weakened economically, as evidenced by the report that the Russian currency rouble against the US dollar showing excellent performance. According to the report, the strength of the Russian currency and its strong competitiveness is due to the fact that the rouble has overtaken the currency of a major world economy like Brazil.
The report comes at a time when the United States and its allies are trying to devalue the Russian currency rouble in order to bring down the Russian economy.
Various measures are being taken such as the recent US intervention in the region. Key ally India has threatened sanctions on Russia for trading in roubles instead of dollars. Despite all such measures, according to experts, it is surprising that the rouble’s rise and fall have not been disrupted.
It is noteworthy that at the beginning of the war the rouble fell to less than a cent against the dollar due to strict sanctions, but observers of the global economy and currencies saw that once the rouble managed to recover after the fall of the rupee and today the world knows that just 2 months after this significant devaluation in March, the value of the rouble is increasing dramatically.
In the first week of March, the rouble depreciated to 0.007 against the dollar, or 70 roubles per dollar, a historic drop in the value of the rouble against the greenback, but then Russian economic officials took important steps for rouble and the rouble has appreciated about 15% since then and is now trading at 0.0 0.016. This means that one dollar can now be bought for about 63 roubles, which is an amazing achievement.
In response to a question about the measures taken by Russian economic magicians to make the rouble depreciate against the dollar again, experts say that one of the main reasons for this is Russia’s imposition of strict capital controls in the country.
So, through tight financial management, Russia has managed to keep its foreign exchange reserves from dwindling at a time when it is in dire need. In this way, Russia not only made up for the lack of investment and capital, but also provided the necessary funds for the invasion of Ukraine, as a result of which today Russia not only stands firm on the military front, but also devalued its currency and also won the battle to weaken its economy.
