Russia’s central bank acknowledged that US sanctions had caused a short-term decline in the value of the ruble, as it sought to provide assurances that its current interventions were sufficient to restore the currency’s strength.
US sanctions on Gazprom Bank, Russia’s main channel for energy sales, and 51 other Russian lenders last week led to the ruble falling to its lowest levels in two years at about 115 to the dollar this week.
Central Bank Vice President Philip Gabonia said: “What we witnessed last week is a very short period and in fact the fluctuations resulting from the sanctions can create short-term imbalances in the currency supply in the market.”
The ruble rose to 105 rubles to the dollar in foreign exchange markets by noon yesterday, a day after the Russian Central Bank announced that it would stop buying foreign currencies – while maintaining sales – in the domestic foreign exchange market until the end of 2024.
“In our opinion, the measures we have currently taken are sufficient and we see signs that the situation is stabilizing,” Gabunia told reporters during the briefing.
He stressed that the bank’s record high interest rate of 21% reduces demand for foreign currencies and “creates additional attractiveness for ruble assets.” “That is why we do not need to take any emergency measures because we do not see any threats to financial stability at the moment.”
