The Central Bank began foreign exchange interventions to support the national currency as the ruble crashed Monday. According to regulator, the policy is aimed at reducing volatility on financial markets amid falling oil prices.
The ruble tumbled amid a record collapse in oil prices. On March 9, Brent crude fell to $35 per barrel while the US dollar rose to RUR 74, Interfax reported. This happened after the disruption of the OPEC+ deal and Saudi Arabia’s decision to raise production to record levels.
Starting today, the Bank of Russia is offering foreign currency on the domestic market guided by the so called ‘budgetary rule’ – when oil drops below the lowest price officials assumed when drafting the federal budget, the country begins spending its reserves. The regulator will continue its interventions until regular sales from the National Wealth Fund begin.
The regulator assured that they are monitoring the financial market situation and that additional measures will be taken to maintain stability.