The Russian Ruble bounces back exponentially remains unaffected by the sanctions imposed by the west
Russia’s military invasion of Ukraine fetched military counterattacks and severe sanctions on the Russian economy, which were imposed by the western world to witness a deep plunge in Russian Ruble. The western countries deemed that by imposing certain sanctions on Russian Ruble, they could jolt the Russian economy effectively. But contradict this possibility; Russia took the world by astonishment as it managed its currency Ruble to bounce back exponentially from the plunge it had witnessed with the onset of war.
Russian President Vladimir Putin, in response to these sanctions by the western countries, has switched to extreme economic measures, which stimulated the inflation of the Ruble. Russia’s central banks have increased the interest rate up to 20%, and Kremlin has imposed capital controls over those endeavoring to exchange Rubles for Dollars or Euros. Before the invasion, the Russian Ruble was roughly trading 85 to the U.S Dollar, but after the U.S imposed severe sanctions and banned the import of Russian oil and gas, the Russian Ruble fell back to 150 to the U.S dollar.
Targeting the Russian economy was a significant step by the western countries to deter President Putin from continuing his invasion. Ukraine President Zelenskyy speaking to Norway’s Parliament, said, “Imposing severe sanctions is the only means to deter the Russian President to continue his invasion and restore peace.” “The stronger the sanctions, the faster we would be able to restore peace,” said the Ukraine President.