**Putin says ‘unfriendly countries’ must buy Russian oil and gas in rubles.**
**The comments by the Russian president are an effort to prop up the value of the ruble, which has plunged because of sanctions.** **By Patricia Cohen, The New York Times, March 23, 2022**
**Economic sanctions imposed by the United States, Europe and their allies have shaken the Russian economy and caused the value of the ruble to plunge.**
**On Wednesday President Vladimir V. Putin of Russia came up with a way to get his opponents to help prop up his currency, by demanding that “unfriendly countries” use rubles to buy the Russian oil and gas that is still flowing....** [end quote]
That puts Europe in a bind.
This is very clever. I wonder how many other oil-producing countries will begin to shift from “petrodollars” to their own currencies.
On Wednesday President Vladimir V. Putin of Russia came up with a way to get his opponents to help prop up his currency, by demanding that “unfriendly countries” use rubles to buy the Russian oil and gas that is still flowing…
Looks like the Russian central bank can no longer get its hands on its foreign currency reserves because of the sanctions. Hence it can no longer buy up Rubels to support the exchange rate and dampen inflation at home.
Solution approach: Let the Western oil and gas customers buy up Rubel instead.
This is very clever. I wonder how many other oil-producing countries will begin to shift from “petrodollars” to their own currencies.
Wendy accounting practices are double entry…as in a major way are export and import balances.
The Russians can have their rubles back. All the central bankers have been trying to figure out how to get rid of the rubles. LOL But Russia still can not buy much more valuable goods and services in the west.
Russia wont get yen from Japan for quite a while. Not until the BOJ runs out of rubles.
Then in all efforts to get rubles a back door will open in the third world.
Just all reminds me of actual value v totally bankrupt equities and Warren Buffett not have a stock split for decades on BRK. People will buy an equity at over $200,000 per share (I have not looked lately). But people will only buy a bankrupt company on the pink sheets for a few cents per share.
In other words the worthless ruble will be like passing a headstone for Saudi Arabia. Because SA needs the value of the dollar longer term.