Russian Ruble (RUB)
What Is the Russian Ruble (RUB)?
The Russian ruble is the national currency of the Russian Federation. The ruble is the second-most seasoned currency still in circulation, behind the British pound. It is comprised of 100 kopeks.
Figuring out the Russian Ruble (RUB)
The ruble (RUB) has been utilized since the thirteenth century and has experienced a number of incarnations during that time, including various revaluations and devaluations. Before the fall of the Soviet Union in 1992, the currency's symbol was SUR, and up until the redenomination in 1998, it was RUR. The 1998 redenomination made one new ruble worth 1000 old rubles.
In recent years, the currency's exchange rate has generally followed global commodity prices, particularly oil prices, since Russia's economy vigorously relies upon exports of oil, natural gas, and other natural resources. The ruble imploded in the last part of 2014, losing about half its value versus the U.S. dollar as global oil prices plunged. Economic and financial sanctions forced by the U.S. what's more, European Union on Russia in July 2014 over its attack of Ukraine likewise debilitated it.
In late 2017, the National Bank of Ukraine requested that every single Ukrainian bank and other financial institutions were illegal to circulate Russian banknotes that portray pictures of Crimea, a region of Ukraine that Russia added in 2014.
Following Russia's attack of Ukraine in February 2022, the U.S., the EU, and different nations forced severe sanctions on Russia's largest financial institutions and enterprises, including Russia's central bank and energy monster Gazprom. These sanctions sent the value of the ruble plunging.
Russia's Economy
Russia is over two times as large as the bordering 48 U.S. states and is honored with huge natural resources. Yet Russia's yearly gross domestic product (GDP) positioned just eleventh overall in 2020, at just around 7 percent the size of the U.S. economy. That is on the grounds that Russia depends intensely on exports of natural resources, as opposed to higher-value-added industries. Truth be told, in terms of GDP, Russia trails a lot more modest countries, like Italy and France.
Progressing political strains have harmed the Russian economy, as the country has over and over confronted sanctions from the international community. The value of the ruble alongside numerous Russian companies plunged after Russia started its attack of Ukraine in February 2022.
The Digital Ruble
President Vladimir Putin announced in 2017 that the Bank of Russia would issue a Central Bank Digital Currency (CDBC). However numerous countries are currently investigating CBDCs, Russia was perhaps of the earliest country to do as such. In December 2021, a model of the digital ruble was completed and the main transfers utilizing the digital ruble's platform were fruitful. The Bank of Russia announced that 12 Russian banks were ready to start utilizing the digital ruble.
The value of the digital ruble is indistinguishable from the value of a customary ruble.
In February 2022, numerous pundits suggested Russia could dodge international sanctions utilizing cryptocurrency. However a CBDC is very different from a private cryptocurrency, a digital ruble could limit Russia's reliance on utilizing foreign currencies, like the U.S. dollar.
Features
- In December 2021, the Bank of Russia started testing the model of a digital ruble.
- The ruble's exchange rate will in general rise and fall with global oil prices, given Russia's position as one of the world's top exporters of oil and natural gas.
- The ruble has been utilized since the thirteenth century, making it the second-most seasoned national currency still in presence, behind the British pound.
- The ruble is the currency of the Russian Federation.
