Russia Currency Guide: The Rise of the Russian Ruble
Spanning parts of Asia and Europe, Russia is larger in land size than any country in the world. Once an economically troubled communist state and member of the Soviet Union, Russia is now one of the world’s biggest economies. Privatization has spurred a phenomenal growth and made Russia one of the star emerging economies. It’s no coincidence that its capital, Moscow is associated with extravagant spending. More billionaires reside there than other city in the world. One of the outstanding results of Russia’s fast growth, has been the rising popularity of its monetary unit, the ruble, among those who trade currency.
Created sometime in the middle ages, the ruble or rouble has been redonominated many times, most recently being revalued in 1998. Some ruble coins were originally made from pure gold. During the 18th century, coins such as the half a kopek as well as the single kopek were copper. Other coins ranging in value from between five and fifty kopeks were once silver. New methods of creating Russian coins are in use today, however and Russian coins are now made of a blend of different metals. The Russian ruble breaks down into exactly 100 kopeks. Kopeks exist in denominations of one, five, fifty and ten.
Of course, since the last redenomination of the ruble in 1998 during which a new ruble valued at 1,000 old rubles was released, the Russian economy has changed exponentially. Today, Russia has a massive and prosperous petroleum industry. They produce more oil than any other county in the world subsequently, but the ruble is also heavily associated with an assortment of other high quality commodities such as precious metals.
Using futures as a conduit, the ruble is currently being traded with more frequency than the also popular Brazilian real. As Russia’s banks become less interventionist regarding fluctuations in the ruble, the volatility is attracting skilled FOREX traders who know how to financially benefit from these wide swings.
Leading portfolio managers predict that there will be greater trading volume in the ruble by the end of 2012 due to more relaxed policies from Russia’s central bank towards foreign investors.
Now a member of the World Trade organization, Russia is drawing more foreign investment and many economists say its economically stronger than many members of the European Union. The Russian government has very ambitious goals and according to a recent article in the Chinese business news publication Xinhuanet, forecasts that in the next two to thee years, the Russian economy will be one of the top five in the world. Better yet, its ample energy reserves and the world’s rising demand for them almost ensure that the ruble will continue to perform well for those who trade foreign currency.