Russia’s Central Bank was forced to halt foreign currency purchases in a bid to stop a dramatic slide in the value of the ruble.
Summary
- Russia’s Central Bank was forced to halt foreign currency purchases Monday in a bid to stop a dramatic slide in the value of the ruble.
- The Russian currency was down 2.3% by Monday afternoon against the U.S. dollar — a significant move in the foreign currency markets — trading at 79.3 at one point.
- “The Bank of Russia has decided not to purchase foreign currency on the domestic market … from 15:00 Moscow time on Jan. 24,” the regulator said in a statement.
- Russia’s Central Bank typically buys foreign currency using the proceeds of Russia’s oil and gas exports.
- The Russian currency immediately gained, dipping below 79 against the dollar in response to the announcement.