The value of the currency no longer reflects the situation in the economy.
Russia managed to return the ruble to pre-war levels (about 80 rubles per dollar). However, the price rate is currently not market and does not indicate the stability of the economy. And for the devaluation had to pay a high price – a ban on buying dollars for the population and almost complete isolation in international financial markets. This was reported by the Financial Times.
Revenues from oil and gas have helped stabilize the ruble as exports continue to flow to Europe. Restrictions also affected. Russians are forbidden to transfer money to their own accounts in foreign banks, to withdraw from accounts more than 10 thousand. dollars, etc.
The central bank also doubled interest rates to 20%. “The authorities control the process so tightly that I don't think these levels can be seen as a reflection of the state of the Russian economy or the effectiveness of sanctions,” said Christian Maggio, head of emerging markets portfolio strategy at TD Securities.
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According to Maggio, foreign investors, many of whom have actually fallen into the trap of owning Russian assets, cannot make deals in this market, and banks outside Russia have virtually stopped specifying the dollar's exchange rate against the ruble. “There is simply no market offshore,” he said.
