The History of Rubles
Rubles, otherwise known as Russian Rubles or Roubles, are the official currency of the Russia since the late 15th century. Prior to the Ruble, the Russian currency consisted of a combination of silver and gold coins called the grivna and zlatnik. The Ruble has been used for centuries and is currently the worlds 11th most traded currency.
The origin of the Ruble is thought to have relatively ancient roots in the “grivna” and “zlatnik” coins. These coins had been the currency of Rus’ from the period of Kievan Rus’ until the Mongol occupation of what is now Russia in the 13th century. The name Ruble, or “rub,” as it was initially known, is believed to have originated from the Russian word rúbly, which means ‘cast.’
It is believed that the Ruble was first issued as a paper currency in 1704, when the significance of coins had diminished, and the Russian government authorized the printing of the first official paper Rubles. In the 19th century, the economically developing Russia, fuelled by an explosion of industrialization, began to issue banknotes to support the growing importance of its economy. It is thought that during this period, between 1900-1913, the Russian currency was more stable than the currency of many other states. The newly issued banknotes were surprisingly popular, being accepted in many places across Europe, which caused the value of the Ruble to surge.
The 1917 Russian Revolution had a major impact on the Ruble, as it caused the collapse of the ruble’s value and was accompanied by prohibitive high-inflation and rampant counterfeiting of rubles. The Soviet Union initially issued a “provisional” Ruble to fill the need for a currency after the collapse of the previous currency. This new ruble was available both in coins and notes and was very vulnerable to inflation. The Soviet government decided to impose a roleback, which halved the number of rubles in circulation and was an attempt to restore some of the stability of the currency.
The unified Soviet Ruble was created in 1961, and was the first ruble since the early 17th century to be recognized officially by the international community. The Soviet Ruble remained the official currency of the Soviet Union until its dissolution in 1991, whereupon it was replaced by the Russian Ruble. This was a major turning point for the Ruble, as the government embarked on a number of large scale fiscal reforms to improve the situation of the Ruble, including increasing its value and introducing tougher anti-counterfeiting legislation.
The new Russian Ruble, which is also known as the Rouble, replaced the Soviet Ruble in 1993. The Russian Ruble has undergone a number of reformations since then and is now a relatively strong, stable currency, being one of the worlds most traded currencies.
Currently, the Russian Ruble is backed by a central bank, the Central Bank of Russia, which is responsible for regulating the currency, setting interest rates, and holding foreign currency reserves. The Ruble is subject to the same economic forces as other world currencies; however, it is not freely convertible and the conversion rate is determined by the Central Bank of Russia.
The Ruble is a symbol of the Russian economy, and its important role as both a global player and a powerful currency. The Ruble’s history is firmly rooted in traditions of exchanging goods and services, as it had been in the Kievan Rus. Today, the Ruble stands strong as one of the main foreign currencies accepted in Russia, and is a part of everyday life.
