Russian Ruble Plunges Past 114 per Dollar; Central Bank Halts Currency Purchases

Nov 27, 2024, 01:18 PM

Russia's ruble has plunged to its lowest level since March 2022, falling past 114 rubles to the U.S. dollar, 117 rubles to the euro, and surpassing 15 rubles per Chinese yuan amid new U.S. sanctions targeting over 50 Russian banks, including Gazprombank. The currency has lost over 24% of its value since August 2024 and over 8% this week alone, fueling inflation and economic uncertainty within Russia. In response to the sharp devaluation, the Central Bank of Russia raised interest rates to 21% and announced it would suspend foreign currency purchases on the domestic market from November 28 until the end of 2024 to reduce volatility in financial markets. Russian businesses are preparing for further devaluation, with some anticipating the ruble could weaken to 120 rubles per dollar. Gazprom shares have also fallen to nearly $1, nearing historic lows, reflecting a broader decline in the Russian market. Despite these developments, Kremlin spokesperson Dmitry Peskov stated that the ruble's drop against the dollar will not affect Russians because they are paid in rubles.