BRICS: By selling off its Yuan and Ruble currencies, Russia beats the US dollar. In an effort to compete with the US Dollar, Russia, a member of the BRICS, recently abandoned the Ruble and the Chinese Yuan. Remarkably, the risk paid off this week as the Ruble beat the US dollar in the forex markets.Nov. 12, 2023
The goal of the BRICS nations is to become independent of US monetary power. For this group of countries, the stakes are particularly high because Russia is dealing with a slew of financial sanctions from the West in reaction to the invasion of Ukraine. It appears that the nation is making moves to evade these penalties. And apparently with success, as the foreign exchange market has seen the Russian ruble beat the dollar.
Something new and intriguing on the financial war that the BRICS are waging against the US. A member of the alliance, Russia, has defeated Uncle Sam’s country in a financially significant strategic victory.
Recent reports claim that the Russian ruble has overtaken the US dollar as the reserve currency on the foreign exchange market. Considering that Russia has been under Western sanctions for more than a year in relation to its invasion of Ukraine, the occasion is not insignificant.
As a result, the Russian ruble continues to dominate the currency exchange markets despite the sanctions placed on Russia. The recent declines in the value of the US dollar relative to other currencies are related to this triumph. It was trading at 100.30 rubles a month ago.
Currently, 91.94 Russian rubles are worth one US dollar. At 8.36 points per dollar, this is a significant decline. All of this in a single month. For Russia, one of the BRICS countries, this development is significant. It means that Russia is effectively surviving the sanctions meant to choke off its economy. This confirms that Russia’s economic policy is sound.
How Does Russia Maintain Its Currency In The Face Of Sanctions?
Of course, this is the question that all analysts have a right to ask. The BRICS nation, headed by Vladimir Putin, has employed strategies to deftly get around the sanctions, is the explanation.
In fact, Russia has launched a massive campaign of purchasing and selling its local currencies on the foreign exchange market in an effort to position the Russian ruble as a rival to the US dollar. This strategy included the yuan, the currency of China, another significant BRICS member, in addition to the ruble.
More specifically, the Russian Central Bank has started large-scale purchases and sales on the local market. Consequently, the organization has completed tender offers at the Moscow Exchange valued at over 0.8 billion rubles. This amounts to eighty-seven million dollars.
The plan turned out to be essential in directing the ruble’s course. With this move, Russia started attempting to manage the performance of its currency in opposition to outside influences. This particularly demonstrates the BRICS nations’ unwavering dedication to carrying out their goal for monetary independence, which would, based on current facts, support digital payment methods. A viewpoint that eventually needs to address cryptocurrency.
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