Plunging Dollar: Setting a New Low for Its Value Again
Latest Trading Session on BCSE Leaves Exchange Rates Unchanged
In the most recent trading session on the Belarusian Currency and Stock Exchange, exchange rates remained relatively unchanged. The dollar slipped a mere tenth of a kopeck, while the yuan shed a tad more. The Russian ruble saw a minor upward shift, but there was no significant change. The euro was not traded this day.
Here's a rundown of the final values:- Dollar: Br 2.9697- Euro: (Not traded)- Russian Ruble: Br3.7831 per ₽100- Yuan: Br4.1251 per ¥10
The Red-Hot Currency of 2025 - The Russian Ruble
Bank of America analysts unexpectedly predicted the Russian ruble as the fiercest currency in 2025, a surprising move reported by CNBC, as reported by our site.
The Russian ruble saw an astounding 40% growth over the first five months of 2025, making it the world's most dynamic currency. Despite a two-year decline, the ruble made a dramatic recovery from its low point and surged.
Various factors contributed to the ruble's strength, including:
- Central Bank's Monetary Policies and High Interest Rates: The Central Bank of Russia kept a high interest rate to limit inflation and curb foreign currency demand, thereby supporting the ruble.
- Capital Controls and Currency Conversion Requirements: Russia imposed strict capital controls, requiring exporters to convert a portion of their foreign currency earnings into rubles, boosting domestic demand for the currency.
- Geopolitical Developments and Peace Talks: Market optimism rose as Russia proposed peace talks with Ukraine, easing some geopolitical tension, particularly with no new U.S. sanctions looming.
- Weaker U.S. Dollar and External Factors: A weaker U.S. dollar and early stabilization or improvement in oil prices contributed to the ruble's value, despite continued Western sanctions and economic pressures.
- Economic Measures and Trade Policies: Anticipated increased customs duties on imported goods and a tighter money supply helped reduce inflationary pressures, in turn supporting the currency’s value.
However, the ruble's strong rally showed signs of volatility when EU sanctions targeting Russian banks and energy exports were announced in June 2025, causing a partial pullback in the ruble’s gains. Russian bankers also suggested the ruble might be overvalued, signaling possible future corrections.
In essence, the ruble's 40% surge in 2025 was largely due to stringent monetary policies, tough capital controls, some easing geopolitical tensions, and external currency dynamics, amid ongoing sanctions and economic challenges.
Despite the latest trading session on the BCSE leaving exchange rates unchanged, analysts at Bank of America unexpectedly predicted the Russian ruble as the fiercest currency in 2025, as reported by CNBC, due to factors such as central bank's monetary policies and high interest rates, strict capital controls, geopolitical developments, weaker U.S. dollar, and economic measures.
