The Russian Ruble uses the code RUB and is the currency used in the Russian Federation, as well as South Ossetia and Abkhazia. This particular currency was earlier used by the Russian Empire and Soviet Union until the two split. Interestingly, Belarus also uses the Ruble but not the Russian Ruble. The Russian currency is divided into 100 Kopeks and as of today, most people use RR, R, PP, or P, all relating to the Russian Ruble.
The name Ruble comes from a Russian verb that translates to “chop”. This term relates to a specific weight that is “chopped” off a gold ingot but it also comes from a noun that means to “scam” since these coins were molded with a seam on the side that made them appear counterfeited. For more than 500 years, this currency has been officially used in Russia although the combination of metals used to mint the coins has changed over time.
Then in 1885, the gold content used to make the Russian Ruble was decreased to 1.161 grams, which was called the French Franc with an exchange rate of one Ruble to four Francs although in 1897, the rate was changed to one Ruble being equal to two and one-half Francs. By the time WWI erupted, the gold standard dropped significantly, causing the Russian Ruble to lose value until the early 1920s.
By 1922, the Russian Ruble underwent a number of denomination changes took place, putting the exchange rate at one new Ruble being equal to 10,000 of the old Rubles. A third change occurred in 1923, which changed the exchange rate so the new Ruble was equal to 100 of the old Rubles however, only paper money was being issued during this time. The fourth change to the gold Ruble happened in 1924, changing the value again at one new Ruble equaling 50,000 old Rubles.
Then the Russian Ruble did not change again until 1947 after WWII. At that time, the Soviet government cut down the amount of money being circulated, which really only affected paper money but the old Rubles also changed in value, now being one-tenth that of the face value. In 1961, another change would occur for the Russian Ruble when a redenomination reform was ordered yet again but this time, by changing the amount of gold used to mint the coins. Unfortunately, hyperinflation was a serious problem during the early part of the 1990s, which devalued the Russian Ruble dramatically.
The seventh change to the Russian Ruble came about in 1998, at which time the exchange rate equaled one new Ruble to 1,000 old Rubles. However, while the goal was to help stabilize the economy, the underlying problems were not corrected, leading to the 1998 Russian financial crisis. In fact, within six months following this horrific crisis, the Russian Ruble was 70% less its value to the US Dollar. Today, the Ruble is stabilizing but it is still lower in value than it should be.
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