Home / Supply Chain News /While The US Dollar Tramples The Euro, Pound And Yen, Russia’s Ruble Skyrockets Against The Greenback

While The US Dollar Tramples The Euro, Pound And Yen, Russia’s Ruble Skyrockets Against The Greenback

25 Sep 2022

Amid the economic rumblings across the world and the energy crisis in Europe, Venezuelan president Nicolas Maduro has said his country is ready to step up and help with oil. Despite the fact that Venezuela has the largest supply of crude oil in the world, U.S. economic sanctions imposed in 2019 by the Trump administration prohibit American businesses from engaging with the state-owned oil company.

The current president of Venezuela, Nicolas Maduro, is a controversial leader and just recently he’s offered to help Western nations like the United States with oil and gas. On September 14, Maduro spoke at an event organized by the Organization of the Petroleum Exporting Countries (OPEC).

The intergovernmental organization’s secretary-general visited Caracas and Maduro said Venezuela is ready to help countries deal with the erratic gas and oil market. “Venezuela is ready and willing to fulfill its role and supply, in a stable and secure manner, the oil and gas market that the world economy needs,” the Venezuelan president said at the event.

While data shows oil exports are low, Maduro was resolute that Venezuela’s Petróleos de Venezuela, S.A. (PDVSA) has “recovered.” At the same time, crude oil prices in Europe (Brent) have dropped from the June highs but are currently hovering at around $89.53 and U.S. crude oil is exchanging hands at $79.30 per barrel.

Natural gas prices in Europe have skyrocketed and remain at all-time high levels. Venezuela’s export levels are so low because of the Trump administration’s financial sanctions against Venezuelan oil, gas, gold, and food imposed in January 2019.

Last May, U.S. president Joe Biden made an exception to the rule and let Venezuela export crude to Europe to pay off debts. The Biden administration has not rescinded the sanctions imposed against Venezuelan oil and gas suppliers.

In August, Maduro abruptly stopped the oil-for-debt deal and the Venezuelan president seems to want to rekindle the arrangement. While OPEC Secretary-General Haitham al-Ghais visited Caracas, Maduro said the energy “crisis” was precarious and the sanctions against Russia are “unjustified.”

Prior to Maduro explaining that Venezuela is prepared to fulfill its role and supply the world with oil and gas needs, the Venezuelan petroleum minister Tareck El Aissami told the press that Caracas is ready and willing to help any government.

Aissami said Venezuela will supply to “any government of the world or any country, or any company of any country,” but added that U.S. sanctions stand in the way. Moreover, Aissami also spoke with Reuters and told the publication that PDVSA is fully “prepared and ready” to work with the oil giant Chevron based in California.

Haitham al-Ghais informed the attendees in Caracas that OPEC’s current challenges are “more serious, [and] more critical” than ever before. Maduro and Aissami are ready to help the West again but the U.S. may be more critical after the Venezuelan president suspended the oil-for-debt deal in August.

Venezuela is not the only country that’s been asking for sanctions to be lifted. Members of the Kremlin have explained that gas connections like the Nord Stream 1 pipeline would be revived after sanctions against Russia are removed.

Iran has also tempted the West with cheap oil as reports note that Tehran said “winter is coming” to Europe and it teased the European Union (EU) with cheap gas. Just like Russia and Venezuela, Iran wants economic sanctions lifted, according to the state-backed news outlet Mehr.

What do you think about Venezuelan president Nicolas Maduro saying that his country is ready to provide oil to the West? Let us know what you think about this subject in the comments section below.

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Central Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year

The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.

Amid the economic rumblings across the world and the energy crisis in Europe, Venezuelan president Nicolas Maduro has said his country is ready to step up and help with oil. Despite the fact that Venezuela has the largest supply of crude oil in the world, U.S. economic sanctions imposed in 2019 by the Trump administration prohibit American businesses from engaging with the state-owned oil company.

The current president of Venezuela, Nicolas Maduro, is a controversial leader and just recently he’s offered to help Western nations like the United States with oil and gas. On September 14, Maduro spoke at an event organized by the Organization of the Petroleum Exporting Countries (OPEC).

The intergovernmental organization’s secretary-general visited Caracas and Maduro said Venezuela is ready to help countries deal with the erratic gas and oil market. “Venezuela is ready and willing to fulfill its role and supply, in a stable and secure manner, the oil and gas market that the world economy needs,” the Venezuelan president said at the event.

While data shows oil exports are low, Maduro was resolute that Venezuela’s Petróleos de Venezuela, S.A. (PDVSA) has “recovered.” At the same time, crude oil prices in Europe (Brent) have dropped from the June highs but are currently hovering at around $89.53 and U.S. crude oil is exchanging hands at $79.30 per barrel.

Natural gas prices in Europe have skyrocketed and remain at all-time high levels. Venezuela’s export levels are so low because of the Trump administration’s financial sanctions against Venezuelan oil, gas, gold, and food imposed in January 2019.

Last May, U.S. president Joe Biden made an exception to the rule and let Venezuela export crude to Europe to pay off debts. The Biden administration has not rescinded the sanctions imposed against Venezuelan oil and gas suppliers.

In August, Maduro abruptly stopped the oil-for-debt deal and the Venezuelan president seems to want to rekindle the arrangement. While OPEC Secretary-General Haitham al-Ghais visited Caracas, Maduro said the energy “crisis” was precarious and the sanctions against Russia are “unjustified.”

Prior to Maduro explaining that Venezuela is prepared to fulfill its role and supply the world with oil and gas needs, the Venezuelan petroleum minister Tareck El Aissami told the press that Caracas is ready and willing to help any government.

Aissami said Venezuela will supply to “any government of the world or any country, or any company of any country,” but added that U.S. sanctions stand in the way. Moreover, Aissami also spoke with Reuters and told the publication that PDVSA is fully “prepared and ready” to work with the oil giant Chevron based in California.

Haitham al-Ghais informed the attendees in Caracas that OPEC’s current challenges are “more serious, [and] more critical” than ever before. Maduro and Aissami are ready to help the West again but the U.S. may be more critical after the Venezuelan president suspended the oil-for-debt deal in August.

Venezuela is not the only country that’s been asking for sanctions to be lifted. Members of the Kremlin have explained that gas connections like the Nord Stream 1 pipeline would be revived after sanctions against Russia are removed.

Iran has also tempted the West with cheap oil as reports note that Tehran said “winter is coming” to Europe and it teased the European Union (EU) with cheap gas. Just like Russia and Venezuela, Iran wants economic sanctions lifted, according to the state-backed news outlet Mehr.

What do you think about Venezuelan president Nicolas Maduro saying that his country is ready to provide oil to the West? Let us know what you think about this subject in the comments section below.

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Central Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year

The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.

While the U.S. dollar has soared in value against a basket of worldwide fiat currencies, Russia’s ruble climbed 4.5% against the greenback this week. During the first week of September, Russia told the press China would pay for natural gas with rubles and yuan. Moreover, Switzerland’s imports of Russian gold reached a high not seen since April 2020.

This week the U.S. Dollar Currency Index (DXY) skyrocketed to new heights leaving a great number of fiat currencies worldwide badly bruised. For instance, two days ago, the European Union’s euro tapped a 20-year low against the U.S. dollar dropping to $0.973 on Friday.

Presently, the euro is even lower at $0.9690, and it is down 2.82% against the greenback during the past 30 days. 30-day statistics indicate the yen is down 4.72%, the sterling pound shed 8.17%, and the Canadian dollar lost 4.78%. The Chinese yuan breached a 7:1 exchange rate against the U.S. dollar for the first time in two years.

However, Russia’s native fiat currency the ruble has been more resilient this year, and it started to see gains a month after the start of the Ukraine-Russia war. Toward the end of June, Russia’s ruble tapped a seven-year high against the U.S. dollar, and at the time economists said “don’t ignore the [ruble’s] exchange rate.”

This Friday, while America’s native fiat currency climbed to new heights against various currencies worldwide, the ruble climbed 4.5% against the USD. The ruble managed to do this while the DXY breached a 20-year high following the Federal Reserve’s recent rate hike. The rising ruble follows Russian president Vladimir Putin explaining earlier this week that he vows to use “all means available” to win the war with Ukraine.

There were also hints of nuclear retaliation from the Russian president, and he detailed he was mobilizing more troops. Additionally, Reuters reported during the first week of September that China would be purchasing fuel from Russia with rubles and yuan payments.

Gazprom CEO Alexei Miller told the press at the time that China paying in rubles and yuan rather than dollars was “mutually beneficial” for both partners. Furthermore, reports indicate that the Swiss Federal Customs Administration revealed Switzerland imported 5.7 tons of Russia’s gold reserves in August. The stash was worth roughly $324 million, and the Swiss have not purchased a cache that size in over two years.

The country’s customs department, however, claims that the Russian gold originally stemmed from Britain, and it further stressed that no financial sanctions were violated. Switzerland fully denied breaking any sanctions and said the 5.7 tons of bullion was originally shipped from the U.K. back in May.

While the ruble’s exchange rate against the greenback has dropped a hair, it remains at 56.87 per dollar, at the time of writing on Sunday, September 25, 2022. While 30-day stats show the euro is currently down 2.82% against the U.S. dollar, the Russian ruble is up 4.32% this month.

Investing.com’s Geoffrey Smith says the surge for cash derived from Russians withdrawing massive amounts of money from their savings accounts. Smith further claims “Russians emptied their savings accounts in the wake of Wednesday’s mobilization call by President Vladimir Putin.”

He noted, however, that the surge in Friday’s ruble withdrawals was not nearly as large as the ruble withdrawals recorded last February. “The rise in demand for rubles led to a squeeze in interbank ruble rates, pushing the currency up in a market,” Smith wrote on Friday.

What do you think about the Russian ruble’s exchange rate skyrocketing this Friday and gaining 4.32% this month against the greenback? Let us know what you think about this subject in the comments section below.

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Central Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year

The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.

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