The outlook for the Russian economy is gloomy, with double-digit inflation and predections of a deep recession. However, capital controls imposed by its central bank, including those that forced exporters to exchange some of their earnings into rubles, have increased demand for the Russian currency taking it to a 7-year high
A view of the Russian Central Bank headquarters in downtown Moscow on May 26, 2022. Russia's currency has surged in value despite the conflict in Ukraine.
Image: Natalia Kolesnikova /AFP via Getty Images
The ruble cemented its unlikely status as the world’s best-performing currency, rising to new multiyear highs this week. Since collapsing in the weeks after Russia’s invasion of Ukraine, which triggered sweeping international sanctions aimed at crippling the Russian economy, the ruble has come roaring back.
On Tuesday, it traded at its strongest level against the U.S. dollar since June 2015. It has gained about 35% so far this year, beating every major currency, and has more than doubled from its post-invasion low.
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