How to invest in russian ruble?

What is the Russian Ruble?

The sharp fall of the Russian ruble occurred in response to the adverse reaction of the international community and sanctions against Russia after the invasion of Ukraine. 

The Russian currency bounced back after the Russian central bank sharply raised its benchmark interest rate on Monday to support the money and prevent a bank run. Russia’s central bank increased its key rate to 20% from 9.5% in a desperate bid to prop up the ruble’s collapse and prevent a bank run.    

Last week, Russia’s central bank intervened in foreign exchange markets to prop up the ruble. Among other things, the sanctions are aimed at limiting the Bank of Russia’s access to reserves of more than $600 billion and limiting its ability to withstand a devaluation of the ruble. The value of the Russian ruble has fallen to an all-time low due to international sanctions imposed against the invasion of neighbouring Ukraine. Russia has already paid a high economic price for its recent invasion of Ukraine, including a slew of sanctions from other countries that have pushed the ruble to record lows against the dollar. 

What is the status of Russian Rumble right now?

The Russian ruble has depreciated to a new all-time low of about $145 per dollar on fears that the oil embargo will cripple the country’s economy, hitting Russia’s primary source of income. On foreign markets, the Russian ruble recently traded at 110 per dollar, down 9.1% on Thursday, with offers on other platforms approaching 117 per dollar. On the EBS trading platform, the Russian ruble fell to 160 against the U.S. dollar, or more than 22%, and recently traded at 145, down 14.5% on Monday.  

The Russian currency fell about 30% against the dollar on Monday, leaving it worth less than 1 U.S. cent, after the U.S., the European Union and the U.K. announced steps to block some Russian banks in the SWIFT international payment system and restrict it. Use by Russia. their substantial foreign exchange reserves. The volatile trading followed Western allies’ moves over the weekend that blocked some Russian banks from accessing a critical global payment system.    

The central bank levies a 30 per cent fee on individuals buying foreign currency at currency exchange offices — a move brokers say aims to curb demand for dollars — but has limited immediate impact. Russia has also banned foreign currency loans and bank transfers outside Russia by Russian residents from March 1, Reuters reported. Russia has ordered Russian exporters to convert 80 per cent of their foreign exchange earnings into rubles, another attempt to appreciate the value of the Russian ruble, but people still line up at banks to buy dollars when the ruble falls. The Russians will have to intervene to support the declining industrial, banking and economic sectors, but they may have to print more rubles due to the lack of access to hard currencies such as dollars and euros.   

A rapidly depreciating ruble could also hit Russian companies that need to issue debt to raise capital. Financial problems may also affect U.S. investors, whose assets are closely linked to the Russian economy and the ruble. Russia does not allow foreign investors holding tens of billions of dollars worth of Russian stocks and bonds to exit these assets. Restrictions on Russia, Russian creditors, key companies and individuals, and Moscow’s countermeasures are increasingly pushing Russian assets out of global financial markets and making it harder for investors to trade any shares.    

The U.S.-traded Russian and Russian-related ETF was suspended on Friday after falling nearly 80% year-to-date. BlackRock has announced that it will no longer be issuing new shares of its ERUS ETF following U.S. sanctions on Russian banks, companies and stocks.    

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