The Central Bank of Russia has taken decisive steps to address the sharp devaluation of the ruble, opting to intervene in the foreign exchange market using its reserves. In its latest move, the bank has sold $18 million worth of various foreign currencies, including euros and other currencies.
This intervention follows a series of similar actions in recent times. Just last month, the central bank sold an additional $40 million worth of foreign currency, and regulatory bodies are planning to withdraw an additional $0.5 billion of foreign currency for sale in the upcoming month.
The primary objective of these interventions is to curb the devaluation of the ruble and safeguard the country’s economic interests. The depreciation of the Russian currency was exacerbated by the military coup led by Yevgeny Prigozhin, leading to a significant decline in its value.
The exchange rate between the US dollar and the ruble reached a one-year high of 94 rubles last week. Reports indicate that some exchange booths offer rates as low as 110 rubles per dollar, indicating a significant deviation from the historical peak. In the ongoing Russia-Ukraine conflict, the official US exchange rate has reached 135 rubles.
Over the course of the past year, the Russian ruble has experienced a substantial depreciation, amounting to a 28% decline. The Central Bank’s interventions seek to stabilize the currency and mitigate the negative impact of the devaluation on the economy.
By Mariam Gorkhelashvili
