The ruble strengthens after Putin’s shock statement

Closing yesterday’s session, the ruble rose 6% to 97.7 rubles to 1 USD in Moscow after touching 94.9 rubles to 1 USD, the strongest level since March 2. On the EBS platform, the ruble also increased by 8.8% at 96.5 rubles to 1 USD. Both of these closes were at their strongest levels since February.

Although the ruble against the dollar has fallen below 100 rubles to the dollar, it is still down more than 22% this year as Russia faces strict global sanctions over the conflict in Ukraine.

Against the euro, the ruble in Moscow yesterday also increased by 6% at 108 rubles to 1 euro.

Gas prices in Europe have surged after Putin’s shock statement, fearing that the move would aggravate the energy crisis in the region.

“This appears to be an attempt by the Russian authorities to put pressure on Western countries to force foreigners who want to buy Russian gas to pay in rubles,” said Liam Peach, Europe economist at Capital Economics, said.

Russian OFZ bond trading has also rebounded this week. Central Bank of Russia announces some market transactions stock Russia will restart from today (March 24) after a 1-month hiatus. Previously, 33 securities in the IMOEX index traded on the Moscow Stock Exchange had limited trading hours and a ban on short selling.

So far, the Central Bank of Russia has not disclosed the size of the OFZ interventions it has adopted to stabilize prices and provide more liquidity to financial markets.

Russia also appears to have averted foreign bond defaults after making a dollar interest payment on a bond that is due in 2029. One bondholder said it had received the payment.

However, Russia’s National Depository Center (NSD) and analysts say that bondholders of European bonds (Eurobonds) issued by Russia could face receiving payments through banks. International agents slower due to the sanctions.