Russian President Vladimir Putin painted the Russian economy in a flattering light during his televised Thursday update, boasting about the ruble's recent rally and the country's inflation compared to its peers.
Putin is in a meeting.
The exchange rate of the ruble is Strengthening and probably the best in the world, according to Putin.
The ruble is up more than 10% against the dollar so far this year, making it the best performer among the 31 currencies tracked.
The ruble's performance is due to the Russian government artificially propping up the currency through capital controls, according to market experts and Western governments.
According to the state-run RIA and the state-run TASS news agency, Putin pointed to Russia's price growth rising only.1% over the last week and claimed that some European countries are nearly at 20%.
Russian annual inflation was 18% in April, according to the Russian central bank, which is much higher than the European Union's 7.5% annual inflation rate.
Craig Erlam, senior market analyst at the OANDA foreign exchange platform, told the German outlet that the currency moves don't represent the fundamentals of Russia. You can see the currency's fundamentals more often than not. The ruble is under a lot of manipulation, according to the U.S. Secretary of State.
The ruble plunged in the early days of Russia's invasion of Ukraine, hitting a record low of 139 against the dollar in early March, before recovering rapidly, trading at 62.5 rubles to the dollar Thursday, its highest level in more than two years. The recovery can be attributed to several policies from Russia's central bank, including barring foreign currency sales and raising the interest rate to 20%.
There was an increase of 79%. The data from the Association of European Businesses shows that Russian car sales fell in April compared to the previous year. The car sales data show how strong the impact of hundreds of foreign manufacturers exiting Russia is, though Putin noted Russian manufacturers are filling in for multinational companies that exited Russia in protest of its invasion of Ukraine.
The euro is at its lowest level against the dollar in five years, trading at 1.04 on Thursday. The euro's dip is due to uncertainty on the continent related to the war and rising prices.
Russia's rouble rebound is not as real as it seems.
Ruble surpasses Brazil as the best-performing currency.
If you think inflation is bad in your area, look at Russia.
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