Russia is an economic train wreck and has not future. How a worker exodus is wrecking the Russian economy – and Putin’s war Conscription and an exodus of talent are threatening growth vital to Putin's war effort https://www.telegraph.co.uk/business/2023/07/03/russia-decreasing-workforce-wrecking-economy/
The strength or weakness of a currency is completely unrelated to whether it holds reserve currency status or not. And please don't bullshit your way out of this. You said stupid things about the Yuen and Rupee. Has nothing to do with the euro or dollar. Russia can change any amounts of yuan or rupees it desires in the international currency market for euros or dollars or rouble. Just shows how clueless you are about international finance.
You are a nutcase. You can change it to other currencies. You could change it for almost exactly 12.2 billion usd. Larger amounts require the approval of the Indian central bank and regulator, however, you can rest assured that Russia locked in approval prior to agreeing to sell oil or gas to India.
Please explain the limitation other than conversion restrictions on India's side which India granted permission to Russia. I worked for more than a decade professionally trading corporate fx structures. And a reference to an article to a journalist does not count. I know of several cases where Russia took stock ownership and direct ownership of Indian entities and subsequently sold them to other Asian and European investors in exchange for currency baskets worth several billion usd. Just because Bloomberg does not report on those does not mean anything. The extreme bias results in a lot of false reporting in media.
https://theprint.in/diplomacy/india...urrency-says-lavrov-on-sco-sidelines/1557719/ https://markets.businessinsider.com...s-trade-imbalance-yuan-weapons-deficit-2023-5 https://thediplomat.com/2023/05/end-of-the-road-for-india-and-russias-rupee-ruble-trade/ https://www.daijiworld.com/chan/exclusiveDisplay?articlesID=6093 You seem to be clueless. We're not talking about a few billion. The trade imbalance between Russia and India is now around $54B annual and growing. India cannot afford to allow exchanging these rupees to dollars. The whole idea (as with yuan and rupee) that you need permission from the country's central bank to convert their currency is ridiculous and a huge limitation on the trade partners' financial sovereignty. As you very well know. So yes, that's the limitation. You (Russia) have $50-80B of rupees. You cannot buy anything but Indian goods with them, but the annual imports from India to Russia is maybe $3B or so (3. vs 50-60. Think about it). So the rest are worthless paper that you cannot do anything with. Good for Indians to have foisted that over on Russia. Russians just seem to be taking it on the chin from all over.
I remember in late 90s when Erin Burnett was such a doll on Bloomberg I was watching financial news only because of her now I can't see whose face is more disgusting hers or Zelensky. Looks like the both have huge hangover. Zelensky is narc everybody know that. He can't even sit quitely for 90 secs though While I agree Putin is weak still looks like transgender US generals even weaker
You’re not following. The Russians are amassing rupees and yuan. In their reserves for their wealth fund they have increased yuan holding from 14% to 60%. The drawdown has been dollars and euros. The Russians are holding much less dollars and euros. This is why their currency is currently sliding. The yuan spends like shit internationally. Meaning the weaker the reserves the weaker the domestic currency for Russia. You can say anything you want but russia and the ruble is highly dependent on their reserves to prop up the ruble because the ruble is essentially a petrodollar. Russia cannot run a deficit for long and they damn sure cannot unload $300bn in yuan if need be. Like I said though, it doesn’t matter what you believe or what you think you know. It’s a losing situation for Russia. And no the Russians cannot just exchange yuan and rupees as needed at these sums. Not to mention the transaction fees would kill the exchange. What I would do if I was russia right now is transfer a lot of those rupees and yuan into purchases or investments in businesses and land in India and China.