The Ruble Regains 100% of Its Loss After Russia Invaded Ukraine, Why?

Key Points

  • When Russia invaded Ukraine on February 24, it took 84 rubles to buy 1 US dollar.
  • On March 7, it took 131.2 rubles to buy 1 US dollar.
  • That’s a 36% decline in the rubble vs the US dollar.
  • The ruble is now back where it started on February 24.

Conventional Wisdom 

Putin and Italy’s Prime Minister, Mario Draghi, have discussed payments for gas in Russian rubles. 

What’s the Difference?