We're looking at performance of Russian Ruble almost since start of its existence as a national currency of Russia.
How all of a sudden Russian currency gained in such way? Many factors aligned to make such move in a given period.
This is why many Russian oligarchs close to Vladimir Putin using state assets, where transferring their "fair" income and wealth to the West. Even their so called "elite" admits that US Dollar will last obviously more than their manipulated currency backed by rigged economy that relies on oil prices.
Here is where things get a little more entertaining. Central Bank of Russia has put all the resources available as a part of measure by the Russian government to convince Russian citizens that everything is in control to avoid social tensions and panic of masses.
But what Russian citizens don't understand is that this is the end of their normal lives as they used to live during high oil prices and access to western technologies. Now almost all means of production, components of which is one or the other way are related to west. Limited access to the primary factors of production will have a devastating effect not just to the economy, but generations yet to come will feel the effect of degradation of society in general.
Significant part of income of Russia which was in dollars and euros out of oil sale is now gone. Central Bank's oil reserves are frozen. This is a turning point for a domino effect.
The resources of intervening in currency market is shrinking. They wouldn't be able to keep like that forever. The more they hold, the higher it will go. One day obviously buying power of Ruble in different world markets will weaken and dollar will rise at the rapidest rate like the angle of steep fibonacci channels which also separates cycles into time periods.
How all of a sudden Russian currency gained in such way? Many factors aligned to make such move in a given period.
- Central Bank intervention
- Fiscal policy shifts
- Cutting Russia out of supply of Western goods and services, meant that sum of money wouldn't be converted to US Dollars or Euro for any further purchases.
- High world oil prices
This is why many Russian oligarchs close to Vladimir Putin using state assets, where transferring their "fair" income and wealth to the West. Even their so called "elite" admits that US Dollar will last obviously more than their manipulated currency backed by rigged economy that relies on oil prices.
Here is where things get a little more entertaining. Central Bank of Russia has put all the resources available as a part of measure by the Russian government to convince Russian citizens that everything is in control to avoid social tensions and panic of masses.
But what Russian citizens don't understand is that this is the end of their normal lives as they used to live during high oil prices and access to western technologies. Now almost all means of production, components of which is one or the other way are related to west. Limited access to the primary factors of production will have a devastating effect not just to the economy, but generations yet to come will feel the effect of degradation of society in general.
Significant part of income of Russia which was in dollars and euros out of oil sale is now gone. Central Bank's oil reserves are frozen. This is a turning point for a domino effect.
The resources of intervening in currency market is shrinking. They wouldn't be able to keep like that forever. The more they hold, the higher it will go. One day obviously buying power of Ruble in different world markets will weaken and dollar will rise at the rapidest rate like the angle of steep fibonacci channels which also separates cycles into time periods.