Capital controls imposed by Russia have turned the ruble into the world’s best-performing currency this year, though not many people can pocket a profit on the rally.

The ruble resumed its advance against the dollar on Wednesday as the Moscow Exchange reopened after two days of a public holiday. It’s now up more than 11% against the US dollar since the start of the year, surpassing the real’s 9% advance to become the top gainer among 31 major currencies tracked by Bloomberg. The offshore rate is up, even more, about 12%.

The ruble’s gains result from a series of measures taken by the government to defend the battered currency in the aftermath of Western sanctions. On top of imposing capital controls, Russia has forced exporters to sell foreign exchange and is demanding its natural gas be paid for in rubles. Strategists say the rally isn’t credible as many currency-trading shops have stopped dealing in the ruble on the grounds that its value seen on monitors is not the price it can be traded at in the real world.

source bloomberg.com