Gold Market Wire
News, analysis and commentary for gold traders and investors
Russian Ruble Stages Enormous Reversal
March 1, 2022 - The standard, mainstream explanation has it that the Russian economy has signed its own death knell with the invasion of Ukraine, and the subsequent barrage of economic sanctions against Moscow. Indeed, the early indications are ominous for Russia, but the Russian Central Bank, once hailed by none other than Kyle Bass as "the smartest people" in the Central Bank world, has a veritable collection of tools at its disposal. One is a massive reserve of Gold, and the other, of course, is, perhaps even better than Gold - energy production.
Either of these instruments can have significant effects on the value of a currency, and perhaps we are starting to see the Russian central bank start to open their 'toolbox'. Witness today's reversal of the Ruble, albeit from stratospheric levels:
To those people who are glued to their screens watching endless reports about the ongoing conflict in Ukraine, and wondering what it means for the Russian economy - - a better "news source" might be to just watch the fx rates. There is a story being told here.