Ruble from this day may become the first world gold currency in fact
A significant event took place today, which was actually led to by the cumulative decisions of the President of the Russian Federation, the governments of unfriendly countries in Europe and America and the decision of the Central Bank of Russia - the ruble may become the first world gold currency in fact, Russia has introduced a gold standard for unfriendly countries in Europe and America in fact.
As reported on the website of the Central Bank of the Russian Federation, the Central Bank of Russia, in order to balance supply and demand in the domestic market of precious metals, from March 28, 2022, will buy gold from credit institutions at a fixed price. The price from March 28 to June 30, 2022 inclusive will be 5,000 rubles per 1 gram.
Although there is nothing unusual and surprising in this decision separately, this decision of the Central Bank of Russia is significant and unique due to the combination of this decision of the Central Bank of the Russian Federation together with the decision of the President of the Russian Federation to sell Russian energy resources to unfriendly countries of Europe and America only for rubles, together with the actual refusal of these unfriendly countries to settle accounts with Russia in dollars and euros.
This means the actual introduction of the gold standard by Russia for consumers of Russian energy resources from unfriendly countries, these countries can now buy Russian energy resources only for rubles. And in order to get rubles, now countries unfriendly to Russia must exchange their gold for Russian rubles - at a fixed rate, 5,000 rubles per gram.
Although, in a general sense, the gold standard is, of course, a guarantee of the exchange of a country's monetary currency for gold, but how else can you call such a situation when the currency of unfriendly countries by these same countries was previously limited in exchange for rubles and the main way for these countries to receive rubles is the exchange of gold for rubles at a fixed rate.
Therefore, from the point of view of the unfriendly countries of Europe and America, the ruble has actually become gold, now the countries will actually be forced to support the guarantee of the exchange of the ruble for gold at a fixed rate.
Since such a decision by Russia violates many of the foundations of the previously created global financial system, the governments of unfriendly countries in Europe and America will certainly not agree with such a decision, and there is a possibility of new sanctions against Russia, among which these countries already name the complete shutdown of all Russian banks from SWIFT and other measures that may hinder money transfers between Russia and other countries of the world, including China. However, it is difficult to predict something here, these are just assumptions and it is not clear what will happen in the future.
Created: 28 March 2022