Bitcoin

The Russian central bank has attributed the ruble’s latest plunge against the U.S. dollar to the temporary reduction “in sales of foreign currency earnings by exporters.” The central bank also revealed that the Chinese yuan accounted for 39% of the Russian forex market’s overall volumes.

Temporary Reduction in Sale of Foreign Exchange

The Russian central bank has said the ruble’s recent plunge to its lowest level versus the U.S. dollar in 2023 is due to lower forex sales by the country’s exporters. The comments by the central bank followed media reports which attributed the ruble’s plunge (to more than 80 units for every dollar) to reduced oil revenues and the impact of Western sanctions on the Russian economy.

Although it ended the year 2022 as one of the world’s best-performing currencies, the Russian ruble has depreciated by more than 10% versus the U.S. dollar in 2023, and by about 5% in the first week of April. However, in its monitoring report that was unveiled on April 10, the Russian central bank insisted that the ruble’s latest fall may be temporary.

“There has been a temporary reduction in sales of foreign currency earnings by exporters, which led to an acceleration of the weakening of the ruble in early April,” the central bank reportedly said.

The central bank claimed, however, that individuals and companies have since responded to the currency’s fall by increasing sales of foreign currency.

Russian Interest in Chinese Yuan Surges

Meanwhile, the central bank also revealed that interest in the Chinese currency — the yuan — spiked in March, after $515 million worth of yuan was bought by Russians. Before that, Russians had bought Chinese currency valued at just over $143 million in the prior month. In addition, trades on the Russian forex market that involved yuan reportedly accounted for 39% of overall volumes. On the other hand, ruble-dollar trades only accounted for 34% of the volume.

Since the imposition of Western sanctions as well as the removal of several banks from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) financial communications networks, the Russian government has advocated for an alternative to the U.S.-dominated financial system. Russia has also sought to diminish its reliance on the U.S. dollar by establishing bilateral currency agreements with countries such as China and India.

Tags in this story

What are your thoughts on this story? Let us know what you think in the comments section below.

Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.














Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimer

Articles You May Like

Muni slightly firmer, investors prepare for CPI report
Big investors buy European bonds over US Treasuries as economies diverge
From climate to cyber to politicization, mega trends impacting municipal market
Israel says Iran has launched drone attack
Thames Water shareholders backed away over regulator’s debt demands