Bank of Russia’s commentary on current state of foreign currency market

The elevated ruble volatility seen in recent days is a natural reaction of the financial market to the news about new potential sanctions in the context of changes in global financial markets. Such episodes of volatility have occurred before against the backdrop of discussions about restrictions; they proved short-lived. The ruble is invariably supported by considerable sales of foreign currency earnings.

The Bank of Russia monitors financial market developments including the foreign currency market. In order to limit volatility, the Bank of Russia may adjust daily volumes of foreign currency purchases within the framework of the fiscal rule, among other things. Over a longer period, operations under the fiscal rule will still be conducted to their full extent.

The Bank of Russia has ample instruments to prevent financial stability threats.