The Russian ruble rises to the best performing currency this year

Ruble has become the world’s best performing currency this year thanks to capital controls implemented by Russia. However, not many people can profit from this positive outcome, according to Bloomberg.

The ruble continued to appreciate against the dollar on May 11 when the largest exchange in Russia – the Moscow Exchange – reopened after a two-day holiday.

Russia’s currency is now up more than 11% against the USD since the start of the year, surpassing the Brazilian real’s 9% gain to become the top performer among the 31 major currencies tracked by Bloomberg.

The achievement of the ruble is due to a series of measures taken by the Russian government to protect the currency hard hit by Western sanctions. In addition to imposing capital controls, Russia forced exporters to sell foreign exchange and demanded payment for Russian gas in rubles.

According to Bloomberg, strategists say the growth of the Russian ruble is not reliable because many currency shops have stopped trading in rubles because the price on the screen is not the price of the ruble that can be delivered. real-world translation.

However, the ruble performs so well in the context of hostilities which is remarkable, especially when other countries have imposed capital controls but have not achieved the same results.

Turkey and Argentina have tried similar measures Russia over the past few years but there have been significant consequences for the lira and the peso. The lira and peso were at all-time lows and failed to recover.