The crippling sanctions that have pushed the Ruble to record lows against Western currencies have begun to backfire on the West as the Ruble gains strength day by day.
Prior to the Special Operation in Ukraine, the Russian Ruble (RUB) was trading at85 RUB to 1 United States Dollar (USD). Once the West started its aggressive sanctions the RUB collapsed to trade at 150 RUB to 1 USD on March 8. The Russian government moved swiftly to reduce the West’s destabilising effects on the RUB by firstly lifting the Russian Central Bank lifting it key rate to 20% from 9.5% on February 28 and by March 29 it had recovered to be trading at 91 RUB to 1 USD. Time will tell how much stronger the RUB to become, however it has been vastly undervalued for many years. This may see the end of the USD as the dominant world reserve currency.
