Russian central bank pauses US dollar purchases on domestic exchange
Date
12/19/2024 6:42:16 AM
(MENAFN) The bank of Russia announced on Wednesday that it will halt foreign currency purchases on the domestic exchange from November 28 until the end of the year to curb market instability. This decision follows a significant decline in the ruble, which reached near-record lows of 114 rubles to the US dollar. The central bank also confirmed it will continue selling foreign currency to replenish the National Wealth Fund, with daily operations amounting to 8.4 billion rubles ($74 million).
The timing for resuming dollar purchases will depend on the financial market situation, with deferred purchases expected in 2025. Last year, a similar move was made following Western sanctions to address the ruble’s sharp depreciation.
The ruble’s current slide is linked to expanding Western sanctions and rising geopolitical tensions. Recent US sanctions, including new restrictions on Gazprombank, have intensified pressure on Russia’s financial sector. Analysts predict that the ruble could weaken further in 2025 due to these ongoing challenges, though a weaker ruble is helping Russia’s budget by boosting revenue from energy exports. Finance Minister Anton Siluanov noted that the weak ruble also benefits exporters despite high interest rates set by the central bank.
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