The regulator will suspend its operations on the foreign exchange market to reduce ruble volatility
The Bank of Russia announced on Wednesday it will suspend purchases of foreign currency on the domestic exchange from November 28 until the end of the year, to reduce market volatility.
The announcement came as the Russian currency slid to near-record lows, reaching 114 rubles against the US dollar on Wednesday.
The regulator also said it will continue to sell foreign currency to replenish the National Wealth Fund. The volume of such operations currently amounts to 8.4 billion rubles ($74 million) per day, according to the central bank’s statement.
A decision on when to resume foreign currency purchases will be based on “the situation on the financial markets,” the regulator stated.
The Bank of Russia took a similar step last year in wake of Western sanctions, suspending dollar purchases from August 10 until the end of the year to stop the sharp weakening of the ruble.
The deferred dollar purchases will be made during 2025, the regulator added.
DETAILS TO FOLLOW
November 27, 2024 at 09:08PM
RT