[Salon] Exchange rate reality

FM: John Whitbeck

In reporting on yesterday's Russian announcement that it was suspending gas sales to Bulgaria and Poland because those countries were refusing to pay in rubles, the NEW YORK TIMES has explained that this Russian ruble requirement was intended to "help prop up the battered ruble."

I decided to check on the internet just how "battered" the ruble is.

The facts revealed, which, while not widely reported in Western media, anyone can confirm online:

(1) On February 23, the day before Russia invaded Ukraine, the ruble was trading at 81 rubles to the US dollar. Today, the ruble is trading at 72 rubles to the US dollar. The ruble has strengthened against the US dollar by 12.5% since the invasion.

(2) By contrast, on February 23, the euro was trading at 1.12 US dollars to the euro. Today, the euro is trading at 1.05 US dollars to the euro. The euro has weakened against the US dollar by over 6% since the invasion.

President Biden's boast that the onslaught of American and European sanctions has "reduced the ruble to rubble" therefore appears to be, at the very least, premature.

While exchange rates and economic health (or pain) are not synonymous, European governments might wish to pause and reflect on the balance of pain resulting from the sanctions which they have already imposed on Russia and on themselves and the potential further sanctions which they are being urged to impose by the U.S. government and on whether prolonging the war for as long as possible, which appears to be the current objective of the American and European leaderships, is really in the best interests of their people.

At least in my view, it is in the best interests of everyone other than the American Hate, Fear and War Industry that this multifaceted war end as soon as possible, ideally by Russia's annual "Victory Day" celebrations on May 9.