During 2025, the Russian ruble achieved the best performance among world currencies against the dollar, surpassing major currencies in a surprising rise that raised concerns among policymakers about its impact on the Russian economy amidst the war.
The value of the Russian currency has risen by about 45% since the beginning of the year, reaching a level close to 78 rubles per dollar, which is a level close to the prices that prevailed before the war in Ukraine about four years ago. This performance makes it the strongest since at least 1994.
This significant improvement is attributed to a sharp decline in domestic demand for foreign currencies as a result of international sanctions, in addition to the tight monetary policy that has increased the attractiveness of ruble-denominated assets.
The Russian Central Bank maintained its key interest rate at its highest level since October of last year until June, before reducing it by five percentage points to 16%.
According to Bloomberg data, the ruble’s performance makes it among the top five global assets in terms of return this year, after “platinum, silver, palladium, and gold.” (Sky News Arabia)
