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Ruble Crushes All Major Global Currencies in 2025
(MENAFN) The Russian ruble has demolished all other major global currencies in 2025, posting its most dominant annual rally in over three decades, Bloomberg calculations revealed.
Russia's currency has also secured a position among the world's five top-performing major assets this year, outpaced exclusively by precious metals—platinum, silver, palladium, and gold.
The ruble has skyrocketed 45% since the year began, hovering near 78 per dollar and approaching thresholds unseen since before the Ukraine conflict's escalation in 2022, the outlet reported Wednesday.
Analysts attribute the currency's explosive strength to a precipitous drop in Russian appetite for foreign exchange under Western sanctions, paired with hawkish monetary policy that has turbocharged ruble-denominated assets' appeal for domestic holders.
The central bank locked in a three-year record-high benchmark rate until December, when policymakers carved out a 5-percentage-point reduction to 16% as part of inflation-fighting measures amid extensive sanctions tied to the Ukraine conflict.
The December rate slash extends a strategic departure from emergency tightening deployed after the restrictions took effect, when the benchmark rate vaulted from 9.5% to 20% to anchor the currency. Following initial easing and subsequent tightening amid fresh inflationary threats, the rate crested at 21% in October 2024 before the bank commenced incremental cuts this year.
The ruble has drawn further reinforcement from the Bank of Russia's foreign currency disposals, mirroring the Finance Ministry's tactical handling of yuan and gold holdings from the National Wealth Fund to counterbalance forfeited energy revenues, the outlet added.
The ruble's 2025 ascent places it among the five most lucrative global assets by spot returns, ranking behind only platinum, silver, palladium, and gold.
Official Russian exchange rates for the dollar and euro were traditionally derived from trading volumes on the Moscow Exchange. Yet formal exchange-based trading in these currencies halted in June 2024 following Western sanctions aimed at Russia's financial infrastructure.
Since that interruption, the Bank of Russia has calculated official ruble rates for the dollar and euro utilizing commercial bank data. The central bank's formula draws from over-the-counter interbank foreign exchange transaction outcomes.
Russia's currency has also secured a position among the world's five top-performing major assets this year, outpaced exclusively by precious metals—platinum, silver, palladium, and gold.
The ruble has skyrocketed 45% since the year began, hovering near 78 per dollar and approaching thresholds unseen since before the Ukraine conflict's escalation in 2022, the outlet reported Wednesday.
Analysts attribute the currency's explosive strength to a precipitous drop in Russian appetite for foreign exchange under Western sanctions, paired with hawkish monetary policy that has turbocharged ruble-denominated assets' appeal for domestic holders.
The central bank locked in a three-year record-high benchmark rate until December, when policymakers carved out a 5-percentage-point reduction to 16% as part of inflation-fighting measures amid extensive sanctions tied to the Ukraine conflict.
The December rate slash extends a strategic departure from emergency tightening deployed after the restrictions took effect, when the benchmark rate vaulted from 9.5% to 20% to anchor the currency. Following initial easing and subsequent tightening amid fresh inflationary threats, the rate crested at 21% in October 2024 before the bank commenced incremental cuts this year.
The ruble has drawn further reinforcement from the Bank of Russia's foreign currency disposals, mirroring the Finance Ministry's tactical handling of yuan and gold holdings from the National Wealth Fund to counterbalance forfeited energy revenues, the outlet added.
The ruble's 2025 ascent places it among the five most lucrative global assets by spot returns, ranking behind only platinum, silver, palladium, and gold.
Official Russian exchange rates for the dollar and euro were traditionally derived from trading volumes on the Moscow Exchange. Yet formal exchange-based trading in these currencies halted in June 2024 following Western sanctions aimed at Russia's financial infrastructure.
Since that interruption, the Bank of Russia has calculated official ruble rates for the dollar and euro utilizing commercial bank data. The central bank's formula draws from over-the-counter interbank foreign exchange transaction outcomes.
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