Ruble is the strongest currency in the world. Putin has a problem

• The ruble reached its highest value against the US dollar for the first time since May 2023.
• In 2025, the ruble is by far the strongest currency in the world.
• Paradoxically, the most unhappy with this whole situation may be the Russian government and Vladimir Putin.

In searching for an answer to the question why this is happening, it is worth remembering that the financial market in Russia is still subject to sanctions and is practically separated from global financial markets.

There can be no talk here, for example, of inflows of foreign speculative capital from Western markets. What is happening with the ruble is rather a resultant of decisions by Russian banks and companies.

Analysts dealing with the Russian market indicate that the ruble is strengthening in hopes of an end to the war between Russia and Ukraine , which would be beneficial not only for Ukraine, but also for the Russian economy.

The latest strengthening is the result of a new proposal by Moscow to meet representatives of Russia and Ukraine in Istanbul, as well as the conservative stance of President Trump, who is avoiding imposing further sanctions on Russia.

The stronger ruble is also supported by the very restrictive policy of the Russian central bank, which is keeping interest rates at a very high level (over 20 percent) to tame the risk of rising inflation in the country. A stronger ruble should have an impact on falling inflation, which is why the central bank is not intervening here.

Paradoxically, the Russian government and Vladimir Putin may be the most unhappy with this whole situation , because the strong ruble relatively reduces Russia's income from oil and gas exports . Raw materials are sold abroad for dollars, and the fewer rubles you pay for a dollar, the less money Russia has from these exports after converting these incomes into rubles.