Russias Central Banksaid Wednesday it will suspend buying foreign currency on the domestic market for the rest of 2024 as the ruble continued sliding to its most affordable levels given that Russia invaded Ukraine in 2022.
The choice to halt foreign currency purchases from Thursday till Dec.
31 seeks to decrease volatility in the financial markets, the Russian regulator said.The postponed purchases will be performed throughout the course of 2025, Russias Central Bank said in a statement.The Bank previouslysuspended planned foreign currency purchases from Aug.
10, 2023, up until Dec.
31, 2023, since they were including additional pressure on the falling ruble at the time.This years suspension comes as the rubletraded as low as 113 to the dollar for the first time given that March 2022, according to Reuters.
It was the Russian currencys lowest level in more than 32 months.Finance Minister Anton Siluanov stated this week a weaker ruble benefits Russian exports.
However the rubles decline likewise fuels inflation, which Reuters states couldadd 1.5 percentage points to the existing inflation rate of 8.5% after the rubles four-month fall.The Central Bankset the rubles official currency exchange rate at 108.01 to the dollar and 113.09 to the euro for Thursday.It said Wednesday it will continue selling foreign currency through its sovereign wealth fund.
Itplanned to offer the equivalent of 8.4 billion rubles each day in the second half of 2024.