Ruble Strengthens at Fastest Pace Since the 1990s

The Russian ruble has posted an unprecedented surge over the past twelve months, becoming the fastest-strengthening national currency since the mid-1990s. In 2025, it has outperformed major global currencies against the US dollar, according to Bloomberg.

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Russian ruble

The ruble has ranked among the world’s five most profitable assets, trailing only precious metals—platinum, silver, palladium, and gold. Since the beginning of the year, the currency has appreciated by approximately 45 percent, with exchange rates stabilizing near 78 rubles per dollar.

This strengthening reflects the combined impact of domestic macroeconomic factors rather than short-term speculative movements.

A key driver has been a marked decline in domestic demand for foreign currency. Amid sanctions and the transformation of foreign trade, Russia’s economy requires less foreign currency to service import operations, reducing pressure on the ruble.

At the same time, payment flows are undergoing a structural realignment, including expanded settlements in national currencies with trading partners, further reducing reliance on the US dollar and the euro.

Another significant factor has been the Bank of Russia’s monetary policy. Elevated interest rates and tight financial conditions have increased the attractiveness of ruble-denominated instruments.

Bank deposits, federal loan bonds, and other fixed-income instruments in rubles are offering positive real returns, encouraging a shift of savings away from foreign-currency assets.

Import substitution policies and state support for domestic producers have also contributed. Expanding domestic manufacturing reduces the need for foreign-currency purchases and reshapes the economy over the medium term.

Psychological factors matter as well. Sustained appreciation has fostered expectations of stability, reducing household demand for foreign currency.

Analysts warn that an overly strong ruble could hurt export competitiveness, particularly in the raw-materials sector. However, these effects are partly offset by budgetary and tax adjustments, while inflation control remains the regulator’s priority.

Overall, the ruble’s current position reflects deep structural changes in Russia’s financial system. Reduced dependence on foreign currencies and strict monetary policy have made the ruble one of the most resilient global assets.