Page 91 - RusRPTJan23

7.0 FX
RUSSIA -FX
2Q20
3Q20
4Q20
1Q21
2Q21
3Q21
4Q21
1Q22
2Q22
3Q22
4Q22
Currency (units per EUR) (eop)
78.9
88.7
91.3
90.6
88.8
86.4
88.6
90.5
56.2
56.5
78.9
Currency (units per USD) (eop)
71.7
75.4
76.5
75.5
73.8
73.4
74.2
81.8
53.1
58.9
74.0
Currency (units per EUR) (average)
79.5
85.9
90.8
89.6
89.4
86.4
88.5
99.4
73.0
87.0
64.3
Currency (units per USD) (average)
73.8
73.6
76.2
74.3
74.2
73.0
73.8
88.9
68.4
77.0
63.0
source: CBR
The ruble was one of the strongest currencies in the world in 2022, partially thanks to the start of payments for gas in rubles, President Vladimir Putin said on December 16 at a meeting on strategic development and national projects.
"The Russian ruble has become one of the strongest currencies in the world since the start of the year. This result was achieved thanks to our decision to regulate capital outflow, to make a transition to gas payments in rubles, to use national currencies in trade with partners actively. But mainly thanks to responsible financial policies," Putin said.
The share of payments in the national currencies of Russia and its trade partners rose to about 33% in December, according to the president.
In December the ruble, after months of stability, weakened rapidly against the dollar by more than 15%, and over the week before Christmas, the dollar has jumped from 63 to 71 rubles. Analysts said that there were no reasons for a sharp weakening and the exchange rate would stabilize at 64-65 rubles. Possible causes can be divided into four groups:
Oil sanctions and the ceiling
Usually, the ruble strengthens at the end of the year, because exporters increase the sale of foreign currency before the tax period. The depreciating ruble in the second half of December is a surprise for the market, says Natalia Orlova, chief economist at Alfa-Bank. It seems that this year the foreign exchange offer was weak. Orlova and
91 RUSSIA Country Report January 2023 www.intellinews.com