Ruble Unexpectedly Becomes World's Best-Performing Currency of the Quarter
Economy
The Russian currency has surprised global markets by topping Bloomberg's global ranking for appreciation speed this quarter. The military conflict in the Middle East and a surge in oil revenues have overturned analysts' depreciation forecasts; however, the sharp strengthening of the ruble has already triggered serious debate among experts.
Since the beginning of April, the ruble has strengthened against the dollar by 12%, reaching 72.6 — its highest level since February 2023. The main growth driver has been the influx of petrodollars amid the conflict involving Iran. Additionally, the exchange rate is supported by the Central Bank's tight monetary policy and financial market imbalances caused by sanctions. Bloomberg notes that while this slows down inflation, it hurts exporters' revenues and budget inflows. Foreign analysts already view the current rate as overvalued, while domestic experts debate whether it is wise to buy up the newly cheapened foreign currency.
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