The ruble becomes new gold in the global markets

The Russian ruble recorded this year the best performance in the world, as it has achieved better gains than gold, silver and other global currencies, according to a report by Bloomberg.

The Russian currency increased since the beginning of this year by 38% against the dollar in the market outside the Moscow Exchange, according to data collected by the “Bloomberg” agency.

The agency attached its report with a graph showing that the Russian currency has made gains since the beginning of the year than gold, which rose by 23%, while silver has achieved gains by 12%.

This comes at a time when current commercial tensions weakened confidence in the American currency, as the dollar fell on Monday to the lowest level in 6 months.

In addition to the dollar’s decline in global markets, the ruble received support from measures taken by the Russian government to support its national currency, most notably, to raise the interest rate.

“Unlike many currencies in developing countries, the ruble is not under pressure from the outskirts of capital out of the transformation of global investors away from the dangerous assets,” said Economist at T -Institams, Sofia Donetsk.

The expert added that “the capital controls have greatly protected Russia.” According to the economist, the high interest rates on loans support the currency.

The inflation prompted the Russian Central Bank to tighten monetary policy and raise the main interest rate to 21%, which reduced the demand for foreign currencies and increased the attractiveness of the ruble.

“Bloomberg” stated that the expected improvement in American policy towards Russia has increased the gravity of the ruble, and Alexander Lutsco, head of research and governor management at Dubai -based Estar Capital, said that foreign investors, despite the continued risk of sanctions, are heading to Russia’s allied countries to reach the assets denominated with high returns.

Lutsco also pointed out that Russian companies are seeking to re -financing their expensive domestic debts (high interest rate) through cheaper loans in the Chinese yuan, which pushes further transferring foreign currencies to the ruble. (Russia today)