If citizens can't go to a bank to trade Ruble for oil/gold, then it's a worthless paper currency like all the rest.
Also, the only "pegging" Russia has done so far, is "pegging" BUY price of gold to US$1450/oz, while the market price is US$1900 (aka. in Putin's favor).
So they are willing to pay you 75% of market rate using a worthless paper currency that no one wants. Wooow, what a deal! /s
Even if Russian GDP does well this year -- and they might, considering they won't have an oil and food shortage like NATO countries -- Ruble will still be SHIT.
At least it's backed by assets. Look how much a difference that has already made for them weak though it may be. 1900/1450 --> seems likely to cause ruble to appreciate and dollar to depreciate until these converge.
1900/1450 --> seems likely to cause ruble to appreciate and dollar to depreciate until these converge.
Lol, no, what are you smoking?
The only way to lower the price of an asset is to flood the market to lower demand.
Like with GameStop, if everyone bought PUTS (aka. is selling the stock), the price drops because there's a high supply and low demand.
Russia pegging at US$1450 demonstrates they want Gold, means the Demand has just increased because there's more BUY orders, but Supply remains the same, so now the price of Gold will go even higher... probably $2000 and beyond.
If citizens can't go to a bank to trade Ruble for oil/gold, then it's a worthless paper currency like all the rest.
Also, the only "pegging" Russia has done so far, is "pegging" BUY price of gold to US$1450/oz, while the market price is US$1900 (aka. in Putin's favor).
So they are willing to pay you 75% of market rate using a worthless paper currency that no one wants. Wooow, what a deal! /s
Even if Russian GDP does well this year -- and they might, considering they won't have an oil and food shortage like NATO countries -- Ruble will still be SHIT.
At least it's backed by assets. Look how much a difference that has already made for them weak though it may be. 1900/1450 --> seems likely to cause ruble to appreciate and dollar to depreciate until these converge.
Lol, no, what are you smoking?
The only way to lower the price of an asset is to flood the market to lower demand.
Like with GameStop, if everyone bought PUTS (aka. is selling the stock), the price drops because there's a high supply and low demand.
Russia pegging at US$1450 demonstrates they want Gold, means the Demand has just increased because there's more BUY orders, but Supply remains the same, so now the price of Gold will go even higher... probably $2000 and beyond.
Or price stays the same and the rubel gets revalued until the orders fill. With fiat there's always two dimensions
Fiat never goes up lol. If it does, they just print more.
They are also forcing countries to buy oil using the Ruble, or purchase from accounts in Russian banks.