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Former Kremlin official blames the ruble's crash on Russia's stockpile of rupees that's stranded in India
http://finance.yahoo.com/news/former-kremlin-official-blames-rubles-041238520.html
August 30, 2023
Mikhail Zadornov, Russia's former minister of finance, attributed the ruble's recent crash to the Kremlin's stockpile of rupees that are stuck in India.
In an opinion piece for RBC, a local outlet, the economist called for the Russian Central Bank to intervene in the exchange rate markets, citing that the ruble's levels would not organically reorient themselves under today's environment.
In his view, the ruble's current 95-per-dollar level is in part the result of Russia's inability to convert rupees it earned via exports into its own currency, leaving the rupees stranded.
Energy trade between the countries blossomed since Russia was restricted by Western sanctions, but Moscow soon found out that the rupees used in the trade have little use in most global markets.
"We have nothing to buy in India, but we cannot return these rupees, because the rupee is an inconvertible currency," Zadornov wrote. He estimated that Russia has sent $30 billion worth of oil-related products to India, and imported $6 billion-$7 billion worth of products.
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(Article does continue. Zim.)
Something tells me Russia should have sold their oil for Rubles . . . and let India figure out how to acquire them.
Zim.
Mad Poet Strikes Again.
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