Just for fun, I took a look at GBP/USD and it looks like that is tanking as well.
Meanwhile the ruble is stronger than it's been in 4 years.
For people in the EU/UK, how has this currency slide impacted your day to day?
Meanwhile the ruble is stronger than it's been in 4 years.
For people in the EU/UK, how has this currency slide impacted your day to day?
I'm living in Germany, the biggest problem is the inflation caused by energy prices. It's still lower than in the US or the UK, but people are starting to struggle. Business is going well as Germany is mostly export-driven, but companies don't want to give out rises.
Half of Russia’s reserves are sanctioned. They’re earning bumper returns on their energy exports, mainly oil, despite the ~20% discount they’re forced to offer. And they’ve been seizing exporters’ hard currency.
They say they’re down 10% (20% sanctions adjusted) from February [1]. That’s a decrease, but it’s not burning. (Obvious disclaimer: they’re probably lying.)
[1] https://tradingeconomics.com/russia/foreign-exchange-reserve...
That sounds like burning to me, even at the improbable 10% level.
Fair enough. It’s a steeper drop than I expected before looking it up.
The only way to get Rubles to buy your imports is to give Russia gold at the rub-gold exchange rate set by Russia.
This peg, iiuc, is one-way. As in, Russia gives you X rubles for Y gold. You can't, however, redeem your rubles the other way around.
So... is the Ruble really strong? idk.. it all sounds very artificial given exchange is only in one direction.
https://www.cbsnews.com/news/russia-ukraine-ruble-currency-r...
How could you buy it, if it can't be sold? Also that article is from June, a lot has changed since then.
Average Daily Volume Traded 100 Days: 514
Average Daily Volume Traded 200 Days: 24602
You can buy it from Russia, but you can't sell it to Russia. That is how you can buy but not sell.
What am I missing here?
I don't think there's a big pile of Rubles outside of Russia. If I had Rubles I would've offloaded them many months ago because there's a chance they could be completely worthless in the medium-term.
Not at all?
I mean, I guess you could argue which caused which but the real problem here in central Europe are gas and energy prices. Those legitimately doubled and affect personal budgets.
Because I'm sure all the US-based services will soon be updating their prices to match our rapidly weakening currency.
1: https://www.theguardian.com/business/live/2022/aug/22/cinewo...
I don't have plans to go on holiday to the USA in the next year or so, don't plan to buy a Tesla, maybe a new Mac which is going to go up in EUR.
I worry about the long-term effects the war will have for us. Europe is resource poor and constantly rising energy prices will hit our industry hard as we cannot easily find domestic sources of energy. I do hope that switching to renewables gets accelerated and will provide us with both cheap energy and new opportunities for industry.
Oil and gas are expensive, but the strong dollar isn’t the main factor.