tarting this week, the Russian central bank will pay a fixed price of 5,000 roubles ($52) per gram between March 28 and June 30, the bank said on Friday. This is below the current market value of around $68
This is bad, artificially setting prices is one way to destroy the currency and opening up a black market. We can look at Venezuela official dollar exchange and the black market exchange.
Venezuela's currency is fiat and thus only backed by government order. Russia is fixing theirs to gold and thus the exchange rate for the money is connected to the exchange rate for gold in other countries.
This is bad, artificially setting prices is one way to destroy the currency and opening up a black market. We can look at Venezuela official dollar exchange and the black market exchange.
Venezuela's currency is fiat and thus only backed by government order. Russia is fixing theirs to gold and thus the exchange rate for the money is connected to the exchange rate for gold in other countries.
Isn't that exactly what Venezuela did with the dollar years ago and today they have the black market and the official market?
no the opposite
Explain