I think it’s mostly a correction? Rubles got weaker after the Ukraine War sanctions but Russia’s economy has in some ways but not all successfully switched from one market to another and as that realignment finishes playing out I would expect it to more or less get back to where it started.
Previously, Russians could use their 91 rubles to buy a dollar. Now they can buy a dollar AND have 6 rubles left over, because the dollar only costs 85. This means the ruble can buy more dollars, so it’s becoming stronger.
Value went from 91 rubles/usd to 85
Please explain it like I’m dumb lol that doesn’t seem like it’s getting stronger to me
Oh wait I think I get it ty
1 dollar used to be exchangeable for 91 rubles
now 1 dollar can only be exchanged for 85 rubles
this means the dollar is inflating faster than the ruble
and possibly that the ruble is deflating (though that part I am not sure of)
I think it’s mostly a correction? Rubles got weaker after the Ukraine War sanctions but Russia’s economy has in some ways but not all successfully switched from one market to another and as that realignment finishes playing out I would expect it to more or less get back to where it started.
Thanks, that makes sense.
Previously, Russians could use their 91 rubles to buy a dollar. Now they can buy a dollar AND have 6 rubles left over, because the dollar only costs 85. This means the ruble can buy more dollars, so it’s becoming stronger.