1 Ruble – Russian Federation

In 2005, the Russian Federation's currency situation was characterized by robust stability and significant accumulation of reserves, marking a period of stark contrast to the financial crises of the 1990s. This stability was underpinned by a potent combination of high global oil prices—with Urals crude averaging over $50 per barrel—and a strict fiscal policy embodied by the newly created Stabilization Fund. The fund sequestered windfall oil revenues, insulating the budget and the economy from commodity price volatility. The Central Bank of Russia (CBR) maintained a managed float regime, allowing the ruble to appreciate gradually against a bi-currency basket (USD and EUR) to combat inflation, which remained a persistent concern despite falling to a historically low 10.9% that year.

The period saw sustained upward pressure on the ruble from strong capital inflows, driven by both high commodity export earnings and renewed foreign investor interest in Russia's growing economy. To prevent excessive appreciation that could harm non-oil exports, the CBR actively intervened in foreign exchange markets, purchasing billions of dollars. These interventions led to a massive expansion of international reserves, which soared past $180 billion, positioning Russia among the world's top reserve holders. This reserve stockpile served as a critical safety net and a symbol of regained economic sovereignty.

However, this stable facade contained underlying vulnerabilities and policy tensions. The CBR faced a complex "trilemma," balancing currency stability, independent monetary policy, and free capital flows. Sterilizing its forex interventions to curb money supply growth was costly and increasingly difficult. Furthermore, the ruble's real effective exchange rate appreciated significantly, raising competitiveness concerns for domestic industry. While 2005 represented a peak of post-crisis calm and strength, the economy's deepening dependence on raw material exports and the challenges of managing large-scale petrodollar inflows highlighted structural issues that would later be tested by the 2008-2009 global financial crisis.