The Russian ruble has suffered a lot recently, with its value falling dramatically against other currencies. This means that buying things in Russia is currently very cheap for people from outside the country. However, it’s not advisable to buy rubles for this reason alone. If you have friends or family in Russia, it might be tempting to send them money so they can make purchases at home instead of spending so much on foreign goods. The same logic may lead you to think that buying rubles is a good investment because their value is expected to continue falling. However, the risks of doing either of these things are too high right now. Read on to learn why you shouldn’t buy rubles right now and what you should do instead if you want to help people in Russia without putting your own financial future at risk.
Is It A Good Idea To Buy Rubles?
No, it is not, because the ruble is not a good investment and it is not a safe currency to invest in. The ruble is a weak currency with a history of wild price swings, which can lead to major losses for investors. The currency experienced extreme volatility in 2013 and 2014.
Why You Shouldn’t Buy Rubles Right Now?
1. Russian Sanctions Could Lead to More Volatility
There are a lot of geopolitical issues happening with Russia right now. One of the major problems is sanctions. The U.S. imposed sanctions against Russia in 2014 for its involvement in the annexation of Crimea, along with several other issues. Since then, the ruble has fallen considerably. However, if the sanctions are lifted in the future, the ruble could go back up again. If you want to buy rubles, you should be aware of this risk.
2. The Ruble Has Already Fallen a Lot
The ruble has fallen a substantial amount since 2014, and this is one reason why you shouldn’t buy rubles right now. There is a chance that it will go up again, but there is also a possibility that it will continue to fall. No one can predict the future, but it’s clear that the rubble has already fallen a lot. It’s possible that it will rebound, but there is still a risk that it will continue to fall. If you have bought rubles and they continue to decline in value, you will have lost a considerable amount of money.
3. You’ll Have A Hard Time Liquidating
Another reason why you shouldn’t buy rubles right now is that you’ll have a hard time getting your money out. If you want to liquidate your rubles, you’ll need to do so through a licensed FX broker. Unfortunately, many of these brokers are not accepting new customers. This may be due to the fact that Russia has imposed a ban on importing certain goods from the U.S. If the sanctions are lifted and the ruble goes back up, these brokers will be much more open to accepting new customers. If you buy rubles now, you could find yourself with a lot of money that you can’t get out of.
4. You Risk Losing All of Your Money
When you buy anything as an investment, there is always a risk that you could lose all of your money. This is especially true when it comes to buying rubles right now. If the ruble continues to decline in value, you could find yourself with a lot of worthless paper. This wouldn’t just be a minor loss. You would have lost all of your money. Many people who have invested in currencies have lost a lot of money. This is something that you could easily avoid by waiting a little while longer before you buy rubles.
Why The Ruble Has Fallen So Much?
- The ruble has been falling rapidly in value for some time now. The reasons for this are many and complicated, so we won’t go into detail here. For now, it’s enough to say that the recent economic sanctions against Russia and falling oil prices have both hurt the ruble. This means that — while the current situation is great for anyone visiting or living in Russia — buying rubles at today’s exchange rates isn’t a good idea.
- There’s no telling how long the exchange rate will stay as low as it is. In fact, it could easily fall again. If you buy rubles now, you could lose a lot of money if their value rises again in the near future.
- The Russian economy has been struggling for a long time. The country’s economic problems are not new, but they have become more obvious recently. The value of the ruble has been falling slowly but steadily over the last two years and is now at a historic low.
- It’s important to understand why this is happening and what the possible consequences could be. This will help you to decide if buying rubles is a good idea or not for your own financial future in the long run.
What To Do If You Want To Help Russian Friends And Family?
- If you want to help Russian friends or family, there are lots of ways you can do so. If you have extra money that you don’t know what to do with, you could send it to a friend or family member in Russia. This can be a great way to help them during a difficult period. You could also send gift cards to people in Russia. This is another great way to help without putting your own money at risk. Again, make sure you find a reliable site before you buy gift cards.
- If you have lots of time on your hands, you could also consider teaching English to Russian people. Fluent is an online platform that connects English teachers with students in Russia. You can also use Fluentia to find a language partner to study with. This can help you learn Russian while helping someone in Russia improve their English.
- If you have friends or family in Russia, you should consider doing one of the following: Use a service like PayPal to send them money so they can buy things when they’re there. If the exchange rate is too low for them to buy things with the money you sent and they need more, use another service to do it for them.
- Make sure you find a reliable site that sends gift cards to people in Russia before you buy them. This way, if the exchange rate falls further, your friends and family will still be able to get what they need when they arrive home.
- Learn how to send money from other countries so you can help your Russian friends and family members with their purchases on arrival back home. It’s easy, and free, and it won’t cost much at all if the exchange rate falls further. All of these options are great ways for people in Russia to receive help from their loved ones when they need it most. By using one of these options, you can help them without risking your own financial future.
How To Help Family And Friends In Russia Right Now?
- If you have family members or friends in Russia, there are lots of ways to help them without putting your financial future at risk. You can send money through a service like PayPal or Moneygram so they can use it to make purchases in Russia. Alternatively, you could buy gifts they can use while they’re in Russia — like a cell phone or laptop — then send them to them when they return home.
- You can also use one of the many sites that allow you to send gift cards to people in Russia. This is a great way to help them when they’re shopping and you don’t have a lot of money to spare.
- Just make sure you find a reliable site before you buy gift cards for your Russian friends and family members. It’s also a good idea to keep in mind that some of these sites charge a fee for using them.
The Russian ruble has fallen dramatically in value recently, making it cheaper than ever to buy things in Russia. This makes it tempting to buy rubles and exchange them for goods in Russia. However, it’s not advisable to buy rubles at today’s exchange rates. You have no way to know for sure if the exchange rate will rise again in the near future.