Despite the West's harsh sanctions on Moscow, the ruble, the Russian currency, has recovered after plunging significantly for days following Russia's invasion of Ukraine. The ruble was pegged at around 82 to the dollar on April 1, when it was trading at around 76 to the dollar prior to the invasion.

The ruble hit a new low of around 137 to the dollar less than a month ago, on March 7.

Reports said that the rapid currency bounce does not indicate that "Russia's sanctions-stricken economy is out of the woods," but economists said that Moscow may have pulled a rabbit out of the hat.

The Russian Central Bank declared that the ruble would be tied to gold in order to sustain the currency; 1 gramme of gold is currently worth 5000 rubles. The measure is likely to increase gold inflows into the Russian Central Bank's coffers.

Due to the imposition of restrictions on Russian gold, the central bank may sell gold stocks held by institutions and individuals. The ruble's value will rise further as the central bank's gold reserves from domestic sources increase, which is expected in the coming months.

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