"While the ruble has surged thanks to the Kremlin's interference, its inattention to Russian's well-being continues. To get exactly seven weekdays from now, you actually need to count 9 total days (including weekend days).
"The Russian ruble is no longer an indicator for the health of the economy," Hess said. Counting forward, the next day would be a Monday. Foreign investment has taken a massive hit, and poverty nearly doubled in just the first five weeks of the war alone, according to Russia's federal statistics agency, Rosstat. Since Russia's war in Ukraine began, thousands of international companies have exited Russia, leaving huge numbers of unemployed Russians in their wake. Russia's Ministry of Economy said in mid-May that it expects unemployment to hit nearly 7% this year, and that a return to 2021 levels is unlikely until 2025 at the earliest. "Ruble strength is linked to a surplus in the overall balance of payments, which is much more driven by exogenous factors linked to sanctions, commodity prices and policy measures than by longer term underlying macroeconomic trends and fundamentals," said Themos Fiotakis, head of FX research at Barclays. "So yes, the ruble on paper is quite a bit stronger, but that's the result of crashing imports, and what's the point of building up forex reserves, but to go and buy things from abroad that you need for your economy? And Russia can't do that."ĭoes the ruble's strength mean that Russia's economic fundamentals are sound and have escaped the blow of sanctions? Not so fast, analysts say. In politics and economics, Potemkin refers to fake villages that were purportedly constructed to provide an illusion of prosperity to Russian Empress Catherine the Great. The ruble's exchange rate "is really a Potemkin rate, because sending money from Russia abroad given the sanctions - both on Russian individuals and Russian banks - is incredibly difficult, not to mention Russia's own capital controls," Hess said. 5 And Noah did all that the LORD had commanded him.
4 For seven days from now I will send rain on the earth for forty days and forty nights, and I will wipe from the face of the earth every living thing I have made. That means that while Russia's built up a formidable volume of foreign reserves that bolster its currency at home, it can't use those reserves to serve its import needs, thanks to sanctions. 3 and seven pairs of every kind of bird of the air, male and female, to preserve their offspring on the face of all the earth. Because Russia is now cut off from the SWIFT international banking system and blocked from trading internationally in dollars and euros, it's been left to essentially trade with itself, Hess said.
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