The ruble entered the top 20 world currencies for the first time in five years

In July this year, for the first time since 2016, the ruble entered the top 20 popular world currencies, taking a 0.18% share in international settlements, RIA Novosti reports, citing data from the SWIFT interbank transfer system. Like five years ago, now the Russian national currency is in the last place in the rating, but the previous time its share was 0.26%.

The US dollar tops the top: it accounts for 39.38% of international settlements. This is followed by the euro (38.43%), the British pound sterling (5.99%), the Japanese yen (2.74%) and the Chinese yuan (2.19%).

According to the expert of “BCS World of Investments” Dmitry Babin, the return of the ruble to the top 20 was facilitated by its active promotion by Russia as a means of international settlements with its trading partners. In addition, due to the abandonment of the American dollar by some states, the share of this currency in the total volume of international payments is decreasing, making room for others. Since the ruble accounts for a small part of the calculations, even a slight change in the shares of more “heavy” currencies can significantly affect its place in the rating, the analyst explained.

Babin noted that the share of the dollar and euro in international payments is likely to decline soon. This is due to the scale and level of diversification of the US and European Union (EU) economies.

Earlier, in July, experts calculated the Big Mac index, which compares the price of a hamburger in different countries and, based on this data, calculates the fair value of the US dollar. The researchers proceed from the assumption that a burger should cost the same in different countries, and if this does not happen, then the local currency is undervalued or, conversely, overvalued. The Russian ruble took the penultimate place in the ranking. Thus, experts came to the conclusion that this currency is undervalued by 59.9%.

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