Russia Suspends Foreign Currency Purchases Until 2024

The Central Bank of Russia has announced a suspension of foreign currency purchases in the domestic market from November 28, 2024, until the end of the year, in an effort to stabilize the ruble, which has weakened significantly, trading at its lowest levels since the start of the Ukraine conflict. This decision is part of broader fiscal measures aimed at reducing financial market volatility and aligns with operations related to the Ministry of Finance's budget rule. The ruble has depreciated over 24% since August, exacerbated by new sanctions against Russian banks, with the official exchange rates set at 108.01 rubles to the dollar and 113.09 rubles to the euro. While the Finance Minister noted that a weaker ruble could benefit exports, it also raises inflation concerns, potentially adding 1.5 percentage points to the current inflation rate of 8.5%. The Central Bank will continue to sell foreign currency from the National Wealth Fund to manage its financial obligations, while plans for deferred purchases will be executed in 2025.