After the collapse of the Former Soviet Union, the Ruble went through a devastating wave of devaluation!
Perhaps many people did not know that the Ruble had once been worth more than the US dollar. At its peak, one Ruble could be exchanged for two US dollars!
Of course, following the collapse of the Former Soviet Union, the Ruble's exchange rate began to plunge. In less than a year, it had depreciated to the point of being almost worthless...
As society gradually stabilized and the national economy developed, the Ruble's exchange rate also began to rise slowly.
By the end of 2004, the exchange rate between the Ruble and the US dollar was roughly 27 to 30, meaning one US dollar could be exchanged for 28 Rubles.
However, that exchange rate floated, and the fluctuations were not small either—two or three Rubles up or down.
When the exchange rate fluctuated most dramatically, one US dollar might only buy 28 Rubles in the morning, yet by noon, it could buy 29 Rubles!
Do not underestimate that one-Ruble margin. When the amount involved was huge, the difference could be staggering.
So, whether they were doing business in Russia or were locals, people preferred holding US dollars in cash. They held their value better.
But when it came to spending locally, most places only accepted Rubles.
That created demand for the free exchange of Rubles and US dollars.
And the government permitted free exchange in this regard.
Thus, when you first arrived in Moscow, you would find exchange counters set up by banks all over the streets, offering services to exchange various foreign currencies for Rubles.
Of course, you could also exchange Rubles for foreign currency, such as US dollars, British pounds, or euros.
However, it was quite obvious that these exchange counters