The question I have been asked most over the last week is why the Russian ruble is been appreciating despite the fact Russia has been hit by extensive economic sanctions.
I must honestly admit that since the sanctions were introduced I have not spent much time following the development of the ruble – or rather the ruble exchange rate on our screens does not really tell us much as the ruble today cannot really be said to be a convertible currency in the traditional sense.
If, for example. showed up at an European bank with rubles and wanted to exchange them for euros then in practice you would hardly be able to do so.
This is because the Russian central bank (CBR) has been sanctioned and what happens in practice is that if you have to exchange rubles for euros the money is basically deposited in the Russian central bank…
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Utopia, you are standing in it! 
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