A lot of people are confusing a gold pegged Ruble with a gold backed Ruble. This announcement only pegs the value of the Ruble to the value of an amount of gold. I know the article mentions that the government is buying gold, but until the government has enough gold in its deposits to match the total outstanding Rubles in circulation, it’s not a gold backed currency.
I believe that the Russian government did this to limit the effects of inflation.
A lot of people are confusing a gold pegged Ruble with a gold backed Ruble. This announcement only pegs the value of the Ruble to the value of an amount of gold. I know the article mentions that the government is buying gold, but until the government has enough gold in its deposits to match the total outstanding Rubles in circulation, it’s not a gold backed currency.
I believe that the Russian government did this to limit the effects of inflation.
Could this move lead to a gold backed Ruble in the future?
I would assume that that is the intention of buying the gold bullion.
"could", yes, "will", much less certain.
Will know for certain if they start launching rockets for the asteroids.
An asteroid named psyche. Core made of gold.