Russian ruble regained 30% value against US dollar in 2022

 The Russian currency regained strength against UD dollar and Euro and reached to 2018 levels  

The Russian ruble has regained 30% value against US dollar in 2022. Russian ruble has become best performing currency in the world, despite facing severe economic crisis due to the international sanctions. Ruble has reached highest level since 2018.  Ruble has been  boosted by export-focused companies selling foreign currency to pay taxes and shrugging off a slight easing of capital controls.

The ruble is steered by capital controls imposed in late February to shield Russia’s financial sector after Moscow’s decision to send tens of thousands of troops into Ukraine prompted unprecedented Western sanctions. The Ruble lost significant value in the early days of Russia-Ukraine war. But it has bounced back strongly in the recent period. 

The ruble was 2.5 percent stronger against the dollar at 56.36, hovering around this level for the first time in more than four years. Against the euro, the ruble gained 3 percent to 58.24, its strongest in seven years.

“The ruble’s sharp gains again owed to tomorrow’s looming deadline for 600 billion rubles ($10.43 billion) in mineral extraction tax payments and the conversion of payment for gas exports into rubles,” Sberbank CIB said in a note.
Despite the slight relaxation in capital controls, the ruble could firm to 55 against the dollar in the near term, said Dmitry Polevoy, head of investment at LockoInvest. “Current levels could be used to open long positions in foreign currencies by mid- and long-term investors,” Polevoy said. The ruble may return to levels of 60-65 against the dollar in June, Sinara Investment Bank said in a note.

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