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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- Putin forced all the gas companies to convert 80% of their sales to Ruble;
- Oilprices are up;
- Ordinary Russians aren't allowed take money out of the country in large quantities;
- ???
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I tihnk the first one is not a thing, see link
Other two make sense. Capital controls make a lot of sense actually. Just don't know what share of the ocean ordinary russians moving money is
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I don't understand how this article contradicts what I'm saying?
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because they can keep selling in euros, right?
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Putin made the rule that the gas companies had to privately convert 80% of their revenue weeks ago.
They've been doing that ever since.
I'm not sure what it has to do with this?
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Replying to
Oh, like once the gas companies get the euros they have to convert? I misunderstood. My deepest apologies wie dan.
So wait, I hadn't heard this before. This seems like the same thing as this, so it makes sense it would prop up the rube
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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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I'm just guessing here but it's more of a power play I think.
Putin wants to break western currency supremacy. Making trading outside the dollar and euro normal. Also settling new trades with India in Rupees and Ruble.
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Also with the old system there was always the risk that EU would do the same thing as the Americans did and sanction them on converting Euros.
But if they settle the payments in Rubles right away this risk disappears.
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