The Bank of Russia is bolstering the beleaguered rouble in response to the mounting challenges posed by Western sanctions against Vladimir Putin’s administration.
The national central bank announced an increased support initiative for the currency, witnessing a dramatic 46% devaluation since the previous June.
From September 14 to 22, the Bank of Russia plans to offload approximately 21.4bn rubles (£170m) of foreign reserves daily, a tenfold increase compared to its current daily sales.
This decision coincides with the forthcoming foreign currency bond payment, commonly referred to as eurobonds, by the government.
The rouble’s value made a recovery subsequent to the initial downturn following Russia’s incursion into Ukraine, attributed to prompt interventions by the governing bodies.
Nevertheless, the rouble’s value has been on a declining trajectory over the past year, hitting a significant low in early August when it surpassed 100 roubles per dollar, a rate not seen since the early days of the Ukraine conflict.
To bolster the rouble and curb the surging inflation, the Bank of Russia has elevated its principal interest rate from 8.5% to 12%.”
