The ruble has regained most of its losses; it continues to gain and is up 60 per cent against the US dollar from its lows in the first week of March. The ruble appreciated to 83 to the dollar intraday on Tuesday against a record low of 139 on March 7. Thanks to the recent rally, the ruble is only about 10 per cent lower than what it was before the Russian invasion of Ukraine on February 24. The ruble was trading at around 76 before the invasion.
Analysts say the post-invasion depreciation in the ruble is modest, considering the severity of European and American sanctions on Russia. As part of the sanctions, the United States and European Union froze nearly half the Russian central bank’s $640-billion foreign exchange reserves held in banks outside Russia.
Some analysts now claim that the recovery in the ruble suggests the impact of the West’s economic sanctions are much lower than anticipated initially. “The sanctions and curbs had created insolvency risks for the Russian economy, leading to a big sell-off in the ruble.
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