Imports into Russia have dropped by over half. meaning they can't use their currency to buy anything. And they import pretty much everything except food and natural resources. Any currency which could not longer be traded internationally would rise as well but it's of little good if you can't trade it for anything.

so before you dismiss all that "propaganda" make sure you don't spread it yourself.

Outside of North America and the EU other regions such as Asia, SouthAm, Africa and ME still trade with Russia.

Yes, it means no luxury goods from the EU and no tech from NorthAm. But the embargo isn’t as broad as one might imagine.

There are some important tool and equipment from the EU and NA that if sanctions remain for years could result in a mega Cuba situation where lots of things are under maintained.

Show some stats and sources. What does Russia import? Chinese goods? Is China willing to trade with Russia for food and energy? What do you think?

Apparently you've fallen for Russian propaganda.

Russia has capital controls. Exporters are forced to buy roubles with 80% of their foreign currency, among other restraints to the free trading of roubles.

If you traded roubles on the black market, you'd get the actual price, and it's much lower there.

>If you traded roubles on the black market, you'd get the actual price, and it's much lower there.

This is simply not true. "Black market", in the form of p2p crypto, had the rate close to the official one since the beginning of the war. Check your sources, they might be biased and feed you bullshit

This is not true though. You pay premium for cash USD in Russia, but that premium is within 8-10%. Not that far from official rate compared to what one could expect.

Edit: also, 80% export rule was lifted recently

Is there a fiat today without capital controls?

Personally I'd take a weak currency any day. It helped exports.

Going back to Russia's economy, the future investment is dying. Its airplanes are not getting new parts. Siemens isn't repairing any equipment. The full effects of the sanctions won't hit for another few years.

> Personally I'd take a weak currency any day. It helped exports.

This only works if you have a developed enough domestic economy to supply everything you need. Assuming you’re exporting more than food, you’ll need resources to produce anything, and if that’s expensive then your theoretically cheap export pricing can’t be so low.

Russia’s domestic suppliers aren’t well rounded, but they do have energy independence which is a major factor going for them.

> Elvira Nabiullina (Russia central bank chair) is IMHO one of the smartest central bankers in the world right now. Much better than "transitory" Powell.

She tried to quit at the end of February but was not permitted to.

as siblings noted about Soviet joke - in today's Russia you don't quit your job, your job quits you.

Actually it isn't that much of a joke today - according to the new wartime law Russian government can compel any business to produce the amount of product/service the government wants with the business having no right to refuse, and the government can force people to work overtime, weekends, holidays with the government defining what payment, if any, to happen to the business and the people.

Looks like the USA's Defense Production Act supposedly has similar effect: https://www.fema.gov/disaster/defense-production-act

There is a Soviet joke hidden in this somewhere I feel we just have to find it.

I don't think any monetary expert would agree with you that Russia or its CB is handling their economy well. It's in much worse shape than the EU or US. Russia is raising rates because they have to, not because it's the good policy choice.

There is a lot of "Russia is bad" evidence in shelled out cities and dead Ukrainians. They certainly earned this one!

Russia is bombing, raping, and murdering civilians. "Russia-bad" is the understatement of the year.