The Russian ruble has plummeted, losing some of last week’s gains as the central bank decided to ease capital controls to curb the currency’s decline.
Late Friday night, the central bank announced that it would abolish the 12% commission imposed on the purchase of foreign currency through stock exchanges from April 11 and lifted the temporary ban on the sale of foreign currency in cash from April 18.
The ruble fell to 82.09 against the dollar with the opening of the market in Moscow, from 71 rubles formed on Friday.
The ruble fell 5% to 79.90 against the dollar, and to 86.35 against the euro (-4.3%).
The decision to abolish the 12% commission on forex trading means that speculators will be able to trade again, Alor Brokerage said, adding that market players tend to “lock in” even small profits. .
The ruble retains support from the mandatory conversion of 80% of export companies’ foreign exchange earnings as well as low interest rates, despite the central bank unexpectedly lowering the interest rate from 20% to 17% last week.
Analysts estimate that Russia receives about $ 1.4 billion a day in export earnings, and the ruble could stabilize further, given capital controls and shrinking exports.
Finance Minister Anton Siluanov also stressed that Russia would take legal action if the West tried to force it to suspend payments on its sovereign debt.
Source: Capital
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
