I don’t get why the ruble is back to its pre-war level. I don’t necessarily think it matters but I’m just confused because presumably a lot of foreign buyers of Russian goods and services who would bid up the ruble’s price are now cut off.
ELI5 please
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Also, why would Russia demand energy payments in rubles? Can't they just take dollars and convert them to rubles after the transaction, thereby having the same effect? What's the diff?
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Re: my original question, is too scared to speak publicly so I'm outing him for having a thought
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They're more or less gonna do this with a new intermediary bank, forcing the Euros to buy the rubles themselves would just have been a way to make them kiss the ring
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I see now they'll use Gazprom Bank, which isn't sanctioned... for some reason!!
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seems minor!
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No, if they take dollars the dollars will be stuck in their frozen foreign reserves.
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I mean, if they get paid dollars, I assume the dollars are delivered to them, right?
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Difference would be that this way it doesn't deplete the foreign currency they (Russia) still have access to
Other than that yes, it's just a question of who is selling USD/EUR to buy rubles
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If they took dollars and sold rubles, they’d destroy (further) the value of their currency. This is equivalent to being short the ruble. Normally they’d balance it out by buying imports with dollars, but they can’t because they can’t buy imports anymore (caveats apply).
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They'd be taking dollars and then selling them to buy rubles
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