• The Russian currency closed at 79.7 ruble in Moscow on Wednesday
Russian currency ruble surged to pre-war levels on Wednesday, after plummeting to record low levels due to the plethora of sanctions imposed on the country since its invasion of Ukraine.
The Russian currency closed at 79.7 ruble in Moscow on Wednesday, marking an exceptional recovery due to Russian oil and natural gas trade.
Last month, the currency sank down to as low as 121.5 rubles per dollar amid the international sanctions.
Russia was also on the brink of a historic debt default for the first time in decades, which it managed to avoid at the last minute.
With most of the world dependent on Russia for their energy demands, the economy of the country is far from getting crumbled due to sanctions imposed by the West and the Europe.
According to Bloomberg Economics, the country will earn nearly $321 billion from energy exports this year, up more than a third from 2021.
“For the politicians, it is a good PR tool by saying that sanctions don’t have any impact. And it will help to limit the inflation impact,” said Guillaume Tresca, a senior emerging-market strategist at Generali Insurance Asset Management, reported Bloomberg.
US President Joe Biden had earlier said that ruble has “reduced to rubble” because of the actions taken by the government against Russia.
“As a result of our unprecedented sanctions, the ruble was almost immediately reduced to rubble. The Russian economy is on track to be cut in half,” Biden had tweeted.
Picture Credits: Reuters