Title: The Ruble Regains 100% Of Its Loss After Russia Invaded Ukraine, Why? Source:
[None] URL Source:https://www.zerohedge.com/ Published:Mar 31, 2022 Author:Tyler Durden Post Date:2022-03-31 07:51:13 by Horse Keywords:None Views:230 Comments:2
Conventional wisdom on why the ruble has rallied is simply wrong...
No, it's not convertible into gold. At least that's not what the report from a couple days ago actually said, contrary to many interpretations that it was, including my own when I posted that news here.
The report, at least from Kitco, seems to be that the Russian central bank was willing to pay 5000 rubles for each gram of gold it receives. It does NOT say that the RCB was willing to pay a gram of gold for every 5000 rubles it receives, which is what backing would really mean. It appears the RCB has therefore, not backed the ruble with gold, but they have backed gold with the ruble. Furthermore, this promise is only for the next 3 months.
Until the RCB will give out gold in exchange for rubles, the ruble is not backed with gold. To say so is a misinterpretation.