Russia also promoted the Mir payment system following the exclusion of Russian banks from the global payment system called SWIFT. Russia managed to create extra demand for the ruble by demanding its trade partners to pay for imports in the Russian national currency. The start of the Russia-Ukraine war sent the ruble crashing, while the US dollar surged amid a capital flight to the safe haven currency. The crash of crude oil prices following the start of the Covid-19 pandemic supported USD/RUB rates in 2020. Going back to 2014, historical charts showed that USD/RUB rates posted a yearly gain of about 80% as USD surged against RUB from an exchange rate of 32.88 to 59.2 by the end of the year.Īccording to the World Bank, oil prices saw one of the largest declines since the Second World War between 20 due to a supply glut from booming US shale oil production and weak energy demand prospects.īetween 20, USD/RUB exchange rates were comparatively stable as the pair traded range bound between 55.5 and 70.6. USD/RUB historical rateĪ study of historical USD/RUB rate over the last decade showed a clear correlation of ruble weakness with falling oil prices. Oil and natural gas revenues made up 45% of Russia’s federal budget in 2021. Ruble foreign exchange rates are correlated with global energy prices.Īccording to the International Energy Agency, Russia is among the world’s top three crude oil producers. The ruble is known to be a commodity currency due to the Russian economy’s dependence on fuel and energy exports. The Russian ruble is the national currency of Russia. A reserve currency is a currency that central banks across the world hold in large quantities.Īccording to the Congressional Research Service, global central banks hold about 60% of their foreign exchange reserves in the form of USD. The US dollar is the world’s dominant reserve currency. The exchange pair indicates the number of Russian rubles a person would get in exchange for one US dollar. USD/RUB is the rate of US dollar (USD) in terms of Russian ruble (RUB). How is USD/RUB expected to trade in 2023 and beyond? Here we take a look at the news that is shaping the USD/RUB forecast. However, critics were sceptical about the ruble’s strength due to capital controls put in place by the Russian government to protect its national currency from depreciating. The Russian ruble ( RUB) emerged as the one of the top performing world currencies in 2022 despite economic sanctions placed on Russia by the West. USD/RUB rates have fallen 17% year-to-date as of 2 December – Credit: Shutterstock, Victoria 1
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