Quick Question on Petrocurrencies

Recently read a comment in the FT: "But the Russian state sells the oil in USD, while its costs are in RUB, - as the oil price goes down, so does the Ruble - so it impoverishes ordinary Russians who see massive inflation, but strengthens the government, pensions go up and patriots don't go on foreign holidays anyway." Need some help understanding this: (1) Is RUB falling because, as oil prices decrease, there is less oil revenue (priced in USD) coming in, thus less demand for RUB per USD, and thus weaker RUB? If so, does this then assume constant demand for oil despite the price decrease? (2) Does it strengthen the govt because they earn their money in USD, and thus are now "richer" because they can get more RUB per USD, while ordinary households will have to pay much higher prices for imported goods due to weaker currency?

Thanks for the help!

1 Comments
 

Earum saepe ratione ipsa. Voluptatum ea temporibus dolores at iste eveniet vel. Dicta fuga quibusdam eius id.

Autem omnis porro eaque itaque rerum similique at. Eos provident voluptas cupiditate consequuntur.

Modi et soluta cum voluptatem voluptatem. Corporis dolorem dolorem aut aut temporibus et cum dolores. Sit quam dolores sit quis aut laudantium ad. Id reiciendis explicabo officia mollitia ratione. Qui qui mollitia et sint. Dignissimos dolore vel odio error veritatis consequatur.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

October 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 99.0%
  • JPMorgan 01 98.4%
  • Guggenheim Partners 02 97.9%
  • Morgan Stanley 06 97.4%

Overall Employee Satisfaction

October 2026 Investment Banking

  • Moelis & Company No 99.5%
  • Morgan Stanley 02 99.0%
  • Evercore 01 98.4%
  • Banco Santander 02 97.9%
  • BMO Capital Markets 13 97.4%

Professional Growth Opportunities

October 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 99.0%
  • Morgan Stanley 05 98.4%
  • Goldman Sachs 01 97.9%
  • JPMorgan No 97.4%

Total Avg Compensation

October 2026 Investment Banking

  • Vice President (16) $429
  • Associates (57) $264
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (28) $184
  • Intern/Summer Associate (16) $161
  • 1st Year Analyst (84) $151
  • Intern/Summer Analyst (76) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
kanon's picture
kanon
99.0
4
Secyh62's picture
Secyh62
99.0
5
DrApeman's picture
DrApeman
98.9
6
GameTheory's picture
GameTheory
98.9
7
dosk17's picture
dosk17
98.9
8
CompBanker's picture
CompBanker
98.9
9
Betsy Massar's picture
Betsy Massar
98.9
10
Mimbs's picture
Mimbs
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”