The idea of в σύνδε. В σύνδε. The connection of the ruble with gold, and other goods, the Russian president is discussing with officials Vladimir Putin as the Kremlin announced on Friday in the shadow of the devaluation of the Russian currency due to sanctions.
According to Reuters, a senior Russian official said this week that the ruble’s link to gold could give Russia more “sovereignty” over its financial system, which has been hit by Western sanctions since Moscow invaded. Ukraine on February 24.
Asked about the idea in a teleconference with journalists, the Kremlin spokesman Dmitry Peshkov “This issue is being discussed with President Putin,” he said.
Russia produces about 10% of the world’s annual gold and is a major producer of oil, gas, metals and grain.
In what some saw as an attempt to link the ruble to gold, Russia’s central bank said in March it would buy gold at a fixed price of 5,000 rubles a gram until June 30. However, two weeks later, after the ruble had risen sharply, he withdrew, saying he would buy after the price was negotiated.
THE Nikolai Patrushev, Russia’s Security Council Secretary and a close ally of Putin said on Tuesday that proposals were being made to link the ruble’s value to gold and other goods. “The most important condition for ensuring Russia’s financial security is to depend only on the country’s internal prospects,” he told the state-run Rossiyskaya Gazeta newspaper.
Asked if these ideas contradict the prevailing economic theory, Patrushev sharply commented that “they do not contradict the conclusions of economics, they contradict the conclusions of Western financial manuals “.
Many coins have been associated with gold or silver in the past, but this practice ceased when the United States in 1971 stopped allowing dollars to be converted into gold.
Gold Rule
The entry into force of the monetary system of the Gold Rule dates back to since 1819, when Great Britain reintroduced the practice of the Bank of England exchanging gold banknotes in circulation at a fixed exchange rate. This practice was practiced in the past by England but was discontinued for four years after the start of the Napoleonic Wars. After 1820, Britain’s substantial sovereignty over the world financial system contributed to the adoption of the Golden Rule by many other countries which hoped to strengthen their economic ties with England. The Gold Rule can be seen as the mutual commitment of the monetary authorities of the participating countries to keep the exchange rates of their national currencies irrevocably stable by freely buying and selling unlimited quantities of gold. For this purpose, they should have the appropriate gold reserves.
In all the countries that adopted the Gold Rule, the price of gold was expressed in terms of domestic currency.
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