Uncategorized, News

THE RUBLE HAS BOUNCED BACK, ARE SANCTIONS REALLY WORKING?

..Vladimir Putin, shunned by the international community, is exerting himself to prop up the ruble.


Barely a month after the West imposed heavy sanctions on Russia, the ruble has bounded back up against the US dollar, to levels last seen before the invasion of Ukraine. It prompts the question: Why isn’t the ruble feeling the pain? Are sanctions not working?



DCO Global News
Published on April 5, 2022
By Odoh Dominic Chukwuemeka


File Photo of Russian Ruble, U.S Dollar

Part of the reason behind this rebound is that Russian authorities are doing plenty to boost the ruble—”a lot of manipulation,” as Anthony Blinken, the US secretary of state, said on Sunday (Apr. 3). ”People are being prevented from unloading rubles… That’s artificially propping up the value.” But these capital controls are unsustainable for an indefinite period of time, Blinken added. “I think you’re going to see that change.”

High energy prices are pushing the ruble up


Additionally, the soaring prices of oil and gas have meant the value of Russia’s exports has risen, said William Jackson, the chief emerging markets economist at Capital Economics, a research firm in London. “At the same time, the impact of sanctions has caused domestic demand and imports to weaken sharply,” Jackson said.


“So Russia’s trade and current account surpluses are probably increasing dramatically, creating demand for rubles.” As long as energy prices stay high—and as long as Russia keeps most of its oil and gas customers—the ruble will likely continue to be pushed upwards, Jackson said.

But these factors may yet change. Germany, France, and other big European purchasers of Russian gas are facing pressure from Russia to make payments in rubles, a move that would prop the currency up even more. If they refuse, and if Vladimir Putin does indeed follow through on his threat to cut them off, that sudden halt in payments will hit the ruble hard.


The ruble’s value is also not the best barometer of how effective the sanctions are. “Irrespective of the moves in the ruble, the sanctions are hurting Russia’s economy hard,” Jackson said. “Inflation is already surging, the banks are under strain and financial conditions have tightened dramatically.”


By Odoh Dominic Chukwuemeka

Your support matters.
Sustain independent journalism.


FOR ADVERT PLACEMENT CALL OR TEXT OUR WHATSAPP NUMBER; +886960917723, +886970840314

Click to Follow our website Dco-global-news.com

FaceBook Page; DCO Global News

DCO Global News Contacts;
For information on Press Releases, News, Advertisements, Videos, Photos, Events happenings, Promotional Events and Adverts, Share your stories with us, Please Call or Send a Text to our Whatsapp number; +886963563485, +886970840314.
Or send an email to; chionikdom02@yahoo.com, emydom29@gmail.com

(Like and Follow our Facebook Page; DCO Global News)

(Follow us on Twitter; @Dcoglobalnews)

(Follow us on LinkedIn; Dco Global News)

(Follow us on Tumblr; Dcoglobalnews)

(Follow us on Google +; Dco Global News TV)

(Subscribe to our YouTube Channel; DCO Global News TV)

Subscribe to our Telegram Channel DCO Global News.

Follow our Website http www. dco-global-news.com

Advertise with us.
Send us enquiries, Press releases.

DCO Global News Promotes the Values of Democracy, Human Rights, Values of Life and Freedom of Expression in a Region Where Genuine Media Freedom Remains Elusive and where many Media outlets remain Divided along Ethnic Lines.
Let’s 🚶 Walk the 🚶 Walk 🚶 Together.
Don’t miss a thing, get the latest updates to fuel your conversation daily.

For 2022, DCO Global News commit to another year of high-impact reporting that can counter misinformation and offer an authoritative, trustworthy source of news for everyone. With no shareholders or political owner, we set our own agenda and provide truth-seeking journalism that’s free from commercial and political influence. When it’s never mattered more, we can investigate and challenge without fear or favour.

(Support DCO Global News.)
LET’S HAVE YOUR SAY, LET’S KNOW YOUR THOUGHTS.
LIKE, SHARE AND COMMENT.

TEXT AD: To advertise here.
Call Dominic +886970840314…
© DGN NEWS MEDIA 2022.
All Rights Reserved.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s