Posted on 04/05/2023 7:15:37 AM PDT by marcusmaximus
The Russian ruble tumbled to its weakest against the dollar in almost a year on Tuesday, edging closer to the 80 mark, hampered by a seasonal drop in foreign currency supply from exporters, in spite of this week’s jump in oil prices.
-snip-
Although higher oil prices usually boost the ruble, reduced FX supply is hurting the Russian currency. Month-end tax payments that usually see exporters convert foreign exchange revenues into rubles were due last week.
The ruble has been on a steadily weakening trend all year, under external pressure since a Western price cap on Russia’s oil sales came into force in early December alongside a European Union embargo on buying sea-borne Russian oil.
The risk of lower export earnings as a result and the cost of reorienting raw material supplies east have impacted the ruble rate.
The ruble has lost 12 percent against the dollar year-to-date and almost 22 percent since the December 5 price cap came into force.
(Excerpt) Read more at english.alarabiya.net ...
Maybe the Ruble has cancer?
The ruble may have lost value against the dollar in recent weeks, But the dollar has been very strong with these interest rate hikes, and measured from several months ago the ruble was very strong . So as usual, the commentary depends mightily upon where you commence your measurements. A weak ruble probably benefits Russia, and if Putin wants to sell oil, he can sell it in dollars.
The ruble has the Putin shakes.
BUT, BUT I thought the Ruble, the Yuan and the other currencies were going to make the Dollar a thing of the past?
That these other currencies were going to make the green back obsolete.
The dollar was strengthening until about 6 months ago. Since then it has declined 10% versus the Euro. The net effect, since February 24, 2022, is that the dollar is about 2% stronger since the start of the war.
Both the dollar and ruble are pieces of paper with ink on them the value of which is determined by imagination of counterparties.
Oil’s value is measured in joules, and there is no imagination involved. Very much like food. The calories are not determined by imagination.
—”A weak ruble probably benefits Russia, and if Putin wants to sell oil, he can sell it in dollars.”
Long ago I heard Milton Friedman answer this question in the blink of an eye.
He said if that were true, ‘The highest inflation countries; would be the leading exporters’.
The students found that humorous.
The Russian rubble is a declining currency.
Without trying to advocate for one position or another, The pundits usually claim that a weak dollar helps our exports. Maybe they are talking about sheer tonnage, or quantities, rather than the value of the currency received.
It's a race to the bottom.
He's exactly right, you mental midget. And, if you and yours want to oppose Trump, get the tracks so the Trump train can run your sorry, corrupt asses over.
Trump or communism in 2024. It's one or the other. And, there are no other options since many as aren't voting for corrupt neocon foreign policies and politicans that allow rampant illegal immigration, the two holy grails of the swamp.
Tell your Putin to cancel the Holy Lake mosque.
Address Trump's comment or are you incapable of doing so?
"De-dollarization is what the US government gets for decades of bullying, wars based on lies and abusing the privilege of world currency to selfishly enrich American elites on the backs of other nations. The victims join together and say "No more!". Game over." -- Donald J. Trump, 4/4/23.
Tell your Putin to cancel the Holy Lake mosque.
So why has the price of oil - not just in dollars but in yuan, euro, gold etc. - swung so wildly in the last couple of years.
The joules in a barrel haven't changed.
—” The pundits usually claim that a weak dollar helps our exports.”
Pundits can be had for a dime a dozen or less on the internet.
Dr. Friedman was an educator with a gift.
Imagination did.
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