2023-08-11 12:10:33
August 10, 2023 Today at 11:52 AM
The ruble rallied following hitting its lowest since the end of March 2022 following intervention by the Russian central bank to stem its slide.
The Russian central bank is trying to slow down the fall of the ruble since the beginning of the year. It announced on Wednesday that it will halt purchases of foreign currencies on the domestic market for the rest of the year, in a bid to help the currency, as it retreated towards 100 to the dollar, its weakest level since the end of March 2022, at the start of Russia’s invasion of Ukraine.
The currency fell to 98.0725 once morest the dollar on Wednesday eveningbefore rising to 96.99 on Thursday.
“It’s not much to stop the ruble’s collapse.”
Yevgeny Souvorov
Economist at CentroCreditbank
The ruble has fallen more than 24% once morest the dollar since the start of the year, signing one of the worst performances on the foreign exchange market with the Turkish lira and the Argentine peso. He found himself under pressure as Russia’s trade balance shrank under the impact of lower exports. Data from the Russian central bank shows that Russia’s current account surplus had shrunk by 85% between January and July.
The central bank’s decision means that the net supply of foreign currencies in the market will decrease from 500 million rubles a day to 2.3 billion rubles. “It’s not much to stop the ruble’s collapse,” said Evgueni Suvorov, economist at CentroCreditBank. “But at least the central bank is doing something.”
“The limited supply of foreign currency from exporters continues to put pressure on ruble positions, due to both problems of repatriation of funds and reduced export supply in the face of stable demand from importers,” said Egor Zhilnikov, analyst at Promsvyazbank .
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