Currency Market Held Hostage by Politics: Why Liquidity Isn't the Whole Story?

An economic expert, pointing to the role of sanctions, war and blockade in currency market fluctuations, said: Contrary to some analyses, liquidity growth alone cannot explain the recent surges in the exchange rate. Expectations about currency supply prospects and political and external developments play a more decisive role in the path of this market.

Referring to the role of sanctions, war and blockade in currency market fluctuations, an economic expert said: contrary to some analyses, the growth of liquidity alone cannot explain the recent jumps in the exchange rate, and expectations about the outlook for currency supply and political and foreign developments play a more decisive role in the direction of this market.