Conventional wisdom on why the ruble has rallied is simply wrong...
Poster Comment:
Duh, it's convertible into gold.
The Ruble Regains 100% Of Its Loss After Russia Invaded Ukraine, Why?
| Source: | https://www.zerohedge.com/ |
| Published: | Mar 31, 2022 |
| Author: | Tyler Durden |
| Post Date: | 2022-03-31 07:51:13 by Horse |
| Views: | 492 |
#1: BTP Holdings To: Horse (#0)
LOL And Nixon closed the gold window in 1971. ;)
BTP Holdings posted on 2022-03-31 07:56:42 Reply Private Reply
#2: Pinguinite To: Horse (#0)
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.
Pinguinite posted on 2022-03-31 10:07:50 Reply Private Reply