Ruble reaches highest level in 4 years
Russia said it will be loosening capital controls as a result.
-
The Russian ruble is at its all-time high.
On Monday, Russia said it will be loosening capital controls as the ruble, which is in a surge, has been threatening to reduce export profit.
In a statement, the Finance Ministry said it will be cutting the share of foreign currency earnings from 80% to 50%. The foreign currency earnings were being used to convert to rubles, from 80% to 50%.
However, the move did not affect the ruble itself, which has been running at all-time highs against the dollar.
On Tuesday morning, the Russian ruble rose 2.4%, trading at 56.61 against the US dollar, which is its highest level in 4 years.
Read more: Ruble hits over 2-year high vs. euro, dollar
Furthermore, the Russian Ministry of Finance contended that it had taken the decision on capital controls because of “the stabilization of the ruble exchange rate and the achievement of a sufficient level of liquidity in foreign currency on the domestic market.”
Media outlet The Bell said that the Finance Ministry's decision is unlikely to weaken the ruble majorly for at least many weeks.
Experts are saying that a strong ruble may harm Russian finances: Yevgeny Kogan, a professor at Moscow's Higher School of Economics, said "The stronger the rate, the bigger the deficit will be," and that “It makes things harder for exporters, raising costs and reducing revenue.”
Last month, the Russian ruble rose against the US dollar and the euro, where the US currency fell under 75 rubles for the first time since mid-February, TASS reported.
The dollar exchange rate at the beginning of trading fell below the level of 75 rubles, while the euro exchange rate fell below the level of 81 rubles for the first time since October 27, 2021, the Russian agency added.
