The Russian currency strengthened on the eve of the economic downturn.
The Russian ruble hit a four-year high against the US dollar and a seven-year high against the euro on Friday. The ruble is driven by capital restrictions, the new ruble-based gas payment system, and the forthcoming corporate tax, which boosts domestic demand for the currency. 08:13 GMT to 57.67 against the dollar represents the strongest position of the ruble since March 2018, according to data from the Moscow Stock Exchange. The ruble gained about 5% against the euro, and the exchange rate fell below 60 rubles to the euro.
According to Bloomberg, despite the sharp fall in April due to the unprecedented economic sanctions imposed on Russia, the Russian currency has become the best currency in the world this year.
However, it was strengthened thanks to the measures taken by the Russian Central Bank and the government. Under the regulator’s capital restrictions, Russian citizens and residents are allowed to buy euros, US dollars or other European currencies at the official exchange rate, but foreign funds cannot be withdrawn until September 9. Holders of US Dollar and Euro accounts in Russian banks prior to March 9 are allowed to withdraw up to $ 10,000 or its equivalent by September 9. However, Russian citizens can buy any other foreign currency, and ruble withdrawals are not limited.
The forthcoming tax payment also raises the ruble, as it has traditionally had to be converted into foreign currency rubles.
Russian stock indices also rose. The dollar-denominated Moscow Stock Exchange index rose 0.33% to 2,444.57 points, according to trading room data.
Source: Russia today
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