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Mon 4 Apr, 2022 12:49 pm
There is not a day which passes when I do not lament the effect that this invasion has upon the innocent Ukrainians. Being half Ukrainian, I feel this viscerally. However, what about Western sanctions?
About one week ago Biden said that the Russian Ruble had been demoted to about 200 per USD. Being both an accountant and having a life long interest in exchange rates (yes, I am old enough both to remember and actually utilize, in Europe, the Bretton Woods fixed rates) the gross error of Biden's assessment of the Russian currency was embarrassingly profound. At the time of his assessment, the Ruble was trading at approximately 120 per USD, not 200 per USD.
But NOW, today, the Ruble has come back to its pre-war level of about 80 per USD. It is now as strong now as it was before this disastrous war. Why is the Ruble so strong now? Why have the sanctions not ruined the Ruble? Biden was dead wrong here. - David Lyga
@david lyga,
Sanctions are a work in progress. Not all Western countries can afford to participate in the boycott. And Russian financiers are working on ways to either get around sanctions or defeat them. But the level of the ruble isn't the only measure of the success or failure of the NATO-led sanctions. Things may look different in a month or two.
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