American in Russia here. I'm very far from an economist, but the poor exchange rate hasn't been a big factor. And "crash" seems a strong term. Maybe I'm wrong but for what it's worth, here's a boots on the ground comment saying that this isn't seeming like a big deal in the life of a GAW guy in Russia.
AHHHHHH...очень хорошо!!!!!!!! OUTSTANDING...people!!! Brings back fond memories of taking college level Russian from a REAL person with a background!!!!!!
The ruble isn't backed by gold. You can buy rubles from the Russian government with gold but that's not backing; backing would be if the Russian government would let you exchange your paper rubles fr gold when you ask and they aren't doing that.
So why would anyone want to trade their gold for paper rubles? Russia is requiring that their exports (mostly oil, to countries not participating in the sanctions) be paid for in rubles. So what's really going on with the ruble and gold is that Russia has found a way of getting the rest of the world the prop up the ruble.
If the ruble is gold backed, how did it crash?
American in Russia here. I'm very far from an economist, but the poor exchange rate hasn't been a big factor. And "crash" seems a strong term. Maybe I'm wrong but for what it's worth, here's a boots on the ground comment saying that this isn't seeming like a big deal in the life of a GAW guy in Russia.
Boots on the ground is the best kind of update. Spasibo.
Не за что!
AHHHHHH...очень хорошо!!!!!!!! OUTSTANDING...people!!! Brings back fond memories of taking college level Russian from a REAL person with a background!!!!!!
spaceba'
My other comment...
This is where discernment makes all the difference, tyvm anon.
that makes sense since i just read an article the other day that sanctions against Russia weren't hurting the Russians, but hurting Europe and USA.
Russia devalues the Ruble when it has a large inventory it wants to sell overseas.
It's a temporary measure, they have a history of doing this apparently. Nothing burger.
The ruble isn't backed by gold. You can buy rubles from the Russian government with gold but that's not backing; backing would be if the Russian government would let you exchange your paper rubles fr gold when you ask and they aren't doing that.
So why would anyone want to trade their gold for paper rubles? Russia is requiring that their exports (mostly oil, to countries not participating in the sanctions) be paid for in rubles. So what's really going on with the ruble and gold is that Russia has found a way of getting the rest of the world the prop up the ruble.
I'm pretty sure we used to have Depressions when the US was on the gold standard.