Conversation

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

Daniel

@growing_daniel

Mar 31

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?

This Tweet was deleted by the Tweet author. Learn more

seems minor!

@FluxBoys

Mar 31

You have to think about the volume and who pays the foreign exchange costs.

Replying to

and

Those cannot be enough to matter I think My only theory is that the big corps in Russia now lack access through sanctions to forex markets Seems like the hint in this story, which mentions that Gazprom Bank is not sanctioned

nytimes.com

After Germany Moves Toward Gas Rationing, Putin Appears to Offer a Workaround

The economy minister had said Germany must be “prepared for an escalation on the part of Russia.”

6:29 PM · Mar 31, 2022Twitter Web App

Replying to

and

They are only accepting euros because of long term contracts, but they have to take a hit by immediately converting EUR to RUB. Next they must get rid of them somehow in a sanctioned market or keep them on their balance sheet and watch inflation destroy the value.