The Ruble Overturns the Dollar: A strategic Turning Point in Global BRICS Economy

BRICS countries want to break free from the influence of the US dollar. The stakes are high for this group of nations, especially for Russia, which is facing a raft of financial measures by the West in response to the invasion of Ukraine. It seems that the country is maneuvering to shake off these sanctions. And seemingly with success, as the Russian ruble has outperformed the dollar in the foreign exchange market.

Victory of a Powerful BRICS Member in the Currency Exchange Market

An interesting new development around the financial battle that BRICS are waging against the United States. One member of the alliance, namely Russia, has achieved a strategically significant monetary victory over Uncle Sam’s nation.

According to recent news, the American currency, the dollar, has been surpassed by the Russian ruble in the foreign exchange market. The event is not trivial, given that Russia has been subjected to Western sanctions for over a year in connection with its invasion of Ukraine.

Thus, despite the sanctions imposed on Russia, the Russian ruble is triumphant in the currency exchange markets. This victory is connected to the recent downward movements in the US dollar exchange rate. Just a month ago, it was trading at 100.30 rubles.

Now, one US dollar is exchanged for 91.94 Russian rubles. This is a substantial drop valued at 8.36 points for the dollar. All this, in just one month. This development means a lot for the BRICS member, Russia. It signifies that despite the sanctions intended to suffocate the Russian economy, it is effectively withstanding them. This attests to the soundness of Russia’s economic strategy.

BRICS: Russia Outperforms US Dollar by Dumping Yuan & Ruble Currencies https://t.co/Dwky3plIU4

— Swag1🇺🇸✝️ (@PattySwiger) November 13, 2023

How Does Russia Manage to Keep Its Currency Afloat Despite Sanctions?

This is obviously the question that every analyst is legitimately asking. The answer is that the BRICS country, led by Vladimir Putin, has deployed tactics to cleverly circumvent the sanctions.

Indeed, to make the Russian ruble a contender to the US dollar, Russia has engaged in a large-scale campaign of buying and selling its local currencies in the foreign exchange market. This approach involved, in addition to the ruble, the yuan, the currency of China, another influential BRICS member.

Specifically, the Central Bank of Russia has initiated substantial buying and selling transactions in the domestic market. The institution has thus executed around 0.8 billion rubles worth of tender offers at the Moscow Exchange. This is equivalent to 8.7 million dollars.

The strategy proved crucial in guiding the trajectory of the ruble. For, this initiative marked the beginning of Russia’s efforts to control the performance of its currency against external pressures. This especially reveals the firm commitment of BRICS countries to implement their monetary independence plan, which according to recent information would accommodate digital payment methods. A perspective that should eventually involve cryptocurrencies.