US Russian Currency Rate -- USAGM
Metadata
- US Russian Currency Rate -- USAGM
- May 11, 2022
- Language English
- Transcript/Script English US Russian Currency Rate – Anisimova HEAD: Experts Weigh On Fate Of Russian Ruble PUBLISHED AT: 05/11/2022 at 9:35am BYLINE: Liliya Anisimova ((PLEASE DO NOT USE NAME)) CONTRIBUTOR: DATELINE: Washington VIDEOGRAPHER: Anatolie Casenco VIDEO SOURCE (S): VOA PLATFORMS: TV only COPY EDITORS: KE; MP PRODUCER: TRT: 3:15 VID APPROVED BY: KE TYPE: TVPKG UPDATE:)) ((All Zoom interviews were done on a PC and are cleared for use)) ((INTRO:)) [[In any country, the currency exchange rate is an indicator of stability and the economy’s strength. With unprecedented sanctions being imposed on Russia, many economists are closely watching the ruble. Anna Rice narrates the story of the Russian ruble, and the effect economic sanctions are having.]] ((NARRATION)) Since February 24 when Russia invaded Ukraine, the Russian currency exchange rate has reached new lows and highs within weeks of each other. In the early days of Russia’s invasion of Ukraine, financial experts predicted that in the near future the dollar and euro would cost over 200 rubles. But in early March, the dollar traded at 140 rubles, the euro – at 150. ((Paolo Pasquariello, University of Michigan)) ((ZOOM)) “…when the sanctions were introduced, they made the demand for rubles collapse, because it forbade most companies around the world from transacting in rubles; it prevented Russian companies from transacting in dollars, and dollars became very scarce for Russians, and rubles became very plentiful, it depreciated.” ((NARRATION)) In early May, both the euro and the dollar traded at less than 70 rubles. And though Russian state TV rushed to announce a victory over Western sanctions, experts warn that the exchange rate is being artificially lowered, because Russia’s Central bank is using all its resources to strengthen the ruble. ((Paolo Pasquariello, University of Michigan)) ((ZOOM)) “There are three basic ways by which Central Banks can control the currency. They can trade it. If they want the local currency to be strong, they buy more of it. They can raise interest rates, so they make the local currency more attractive. They can introduce restrictions on the ability of people to move money in and out of the country, so they can restrict capital mobility. The Russian Central Bank did all three. Of course, you cannot do this forever, because high interest rates kill the local economy.” ((NARRATION)) In the last three decades, Russians have seen it all when it came to their national currency. From the full ban on its free movement to the many cases where ruble was depreciated. Economists say keeping the ruble strong right now is more of a psychological boost for the Russian people, than a real economic boost. ((Paolo Pasquariello, University of Michigan)) ((ZOOM)) “They look at the graphs, they see that the graphs are pointing upwards, so they see a stronger ruble, and supposedly that gives them greater confidence in the government. But there is no economic argument that you make that to benefit the Russian economy right now you need a strong ruble. In fact, you can make a reasonable argument that Russia would benefit from a weaker ruble!” ((NARRATION)) That’s because western sanctions have forced Moscow to refocus its energy exports into developing countries and Asia. A weaker ruble lowers energy prices for potential buyers. The artificially inflated ruble is forcing Russia to sell its oil at a big discount to potential buyers like India. It’s a short-term solution. ((Paolo Pasquariello, University of Michigan)) ((ZOOM)) “The Russian Central Bank is not allowing the Russian economy to sweat. In the short term, the ruble is stabilized, in the long term, the Russian economy will pay the price.” ((NARRATION)) Experts agree that if the West stays united in its eagerness to implement – and abide by – sanctions targeting Russia, the economic consequences for the country, even if not felt immediately, will be quite tangible quite soon. ((Anna Rice, VOA News, Washington
- Transcript/Script US Russian Currency Rate – Anisimova HEAD: Experts Weigh On Fate Of Russian Ruble PUBLISHED AT: 05/11/2022 at 9:35am BYLINE: Liliya Anisimova ((PLEASE DO NOT USE NAME)) CONTRIBUTOR: DATELINE: Washington VIDEOGRAPHER: Anatolie Casenco VIDEO SOURCE (S): VOA PLATFORMS: TV only COPY EDITORS: KE; MP PRODUCER: TRT: 3:15 VID APPROVED BY: KE TYPE: TVPKG UPDATE:)) ((All Zoom interviews were done on a PC and are cleared for use)) ((INTRO:)) [[In any country, the currency exchange rate is an indicator of stability and the economy’s strength. With unprecedented sanctions being imposed on Russia, many economists are closely watching the ruble. Anna Rice narrates the story of the Russian ruble, and the effect economic sanctions are having.]] ((NARRATION)) Since February 24 when Russia invaded Ukraine, the Russian currency exchange rate has reached new lows and highs within weeks of each other. In the early days of Russia’s invasion of Ukraine, financial experts predicted that in the near future the dollar and euro would cost over 200 rubles. But in early March, the dollar traded at 140 rubles, the euro – at 150. ((Paolo Pasquariello, University of Michigan)) ((ZOOM)) “…when the sanctions were introduced, they made the demand for rubles collapse, because it forbade most companies around the world from transacting in rubles; it prevented Russian companies from transacting in dollars, and dollars became very scarce for Russians, and rubles became very plentiful, it depreciated.” ((NARRATION)) In early May, both the euro and the dollar traded at less than 70 rubles. And though Russian state TV rushed to announce a victory over Western sanctions, experts warn that the exchange rate is being artificially lowered, because Russia’s Central bank is using all its resources to strengthen the ruble. ((Paolo Pasquariello, University of Michigan)) ((ZOOM)) “There are three basic ways by which Central Banks can control the currency. They can trade it. If they want the local currency to be strong, they buy more of it. They can raise interest rates, so they make the local currency more attractive. They can introduce restrictions on the ability of people to move money in and out of the country, so they can restrict capital mobility. The Russian Central Bank did all three. Of course, you cannot do this forever, because high interest rates kill the local economy.” ((NARRATION)) In the last three decades, Russians have seen it all when it came to their national currency. From the full ban on its free movement to the many cases where ruble was depreciated. Economists say keeping the ruble strong right now is more of a psychological boost for the Russian people, than a real economic boost. ((Paolo Pasquariello, University of Michigan)) ((ZOOM)) “They look at the graphs, they see that the graphs are pointing upwards, so they see a stronger ruble, and supposedly that gives them greater confidence in the government. But there is no economic argument that you make that to benefit the Russian economy right now you need a strong ruble. In fact, you can make a reasonable argument that Russia would benefit from a weaker ruble!” ((NARRATION)) That’s because western sanctions have forced Moscow to refocus its energy exports into developing countries and Asia. A weaker ruble lowers energy prices for potential buyers. The artificially inflated ruble is forcing Russia to sell its oil at a big discount to potential buyers like India. It’s a short-term solution. ((Paolo Pasquariello, University of Michigan)) ((ZOOM)) “The Russian Central Bank is not allowing the Russian economy to sweat. In the short term, the ruble is stabilized, in the long term, the Russian economy will pay the price.” ((NARRATION)) Experts agree that if the West stays united in its eagerness to implement – and abide by – sanctions targeting Russia, the economic consequences for the country, even if not felt immediately, will be quite tangible quite soon. ((Anna Rice, VOA News, Washington
- NewsML Media Topics Economy, Business and Finance
- Topic Tags Currency
- Network VOA
- Embargo Date May 11, 2022 15:47 EDT
- Description English In any country, the currency exchange rate is an indicator of stability and the economy’s strength. With unprecedented sanctions being imposed on Russia, many economists are closely watching the ruble. Anna Rice narrates the story of the Russian ruble, and the effect economic sanctions are having.
- Brand / Language Service Voice of America