Russian ruble hits 4-year high against USD

According to RT station (Russia), the ruble is being supported by recently introduced capital controls. Along with that, the plan to pay for gas in rubles is boosting demand for the local currency.

According to data from the Moscow Exchange, the exchange rate reached 57.67 rubles/USD on May 20, the most stable against the dollar since March 2018. The ruble is also up nearly 5% against the euro, with the exchange rate now below 60 rubles to the euro, hitting a seven-year high.

According to Bloomberg news agency, the Russian currency has become the world’s best performing currency this year, despite a sharp decline in April due to unprecedented economic sanctions on Moscow.

After that, the ruble rose sharply thanks to the timely response measures of the Central Bank 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. . Those with USD and euro accounts in Russian banks before March 9 will be allowed to withdraw 10,000 USD or equivalent for 6 months, until 9/9. With the exception of the US dollar and the euro, Russian citizens can buy any other foreign currency, and withdrawals in rubles are not limited.

In addition, the upcoming tax payment is also pushing the ruble’s value higher, as the process traditionally requires taxpayers to convert more foreign currency into rubles.