Ruble are gaining in value thanks to recently introduced capital controls by Russia, a ruble-based gas payment scheme and low taxes for corporations driving demand for the currency.
The exchange rate hit 57.67 rubles/USD at 8:13 a.m. GMT, the most stable against the dollar since March 2018, according to data from the Moscow Exchange. The ruble is also up nearly 5% against the euro, with an exchange rate now below 60 rubles per euro, hitting a seven-year high.
According to Bloomberg, the Russian ruble is the world’s best performing currency this year despite a sharp drop in April due to unprecedented economic sanctions against Russia.
Since then, however, the Russian ruble has strengthened due to measures taken by the Central Bank of Russia and the Russian government.
As part of the regulator’s capital controls, Russian citizens and residents are not allowed to buy euros, USD and other European currencies at the official exchange rate until September 9.
The upcoming tax payment is pushing the ruble higher, as traditionally paying taxes requires converting more foreign currency into rubles.
The stock indexes of Russia has also increased. The Moscow Exchange in dollar terms rose 0.33% to 2,444.57, while the RTS index in rubles gained 0.72% to 1,254.69 at 7:04 a.m. GMT, according to data. from the exchange.