Russia Will Backstop The Ruble With Gold??
- Russia Will Backstop The Ruble With Gold??
by Quoth the Raven, https://quoththeraven.substack.com/
The backstopping of the Ruble with gold can come in many forms and doesn’t have to be a direct peg from the Ruble to gold – it can include accepting payment for oil in gold.
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Now that Russia has come right out and said it will only transact in Rubles when selling oil to “unfriendly” nations, I’m expecting gold to be the next safe haven for the nation to fall back on, as it desperately tries to backstop both its currency and its economy.
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The backstopping of the Ruble with gold can come in many forms and doesn’t have to be a direct peg from the Ruble to gold – it can also include the far more likely scenario of accepting payment for oil, the country’s most ubiquitous and valuable resource, in gold.
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A new directive from President Vladimir Putin saw the Russian leader say in a televised government meeting yesterday:
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“I have decided to implement … a series of measures to switch payments — we’ll start with that — for our natural gas supplies to so-called unfriendly countries into Russian rubles.”
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I have been arguing for nearly a month now that Russia would use its biggest commodity, oil, to help backstop its currency. I said last month that Putin would push back on economic sanctions by “allying himself further with China, and even discussing with China the prospects of a monetary system outside of the current global monetary system.”
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