Western sanctions against Russian banks have had an impact on the ruble exchange rate.
The Central Bank of the Russian Federation noted in its Financial Stability Review that these restrictions required adjustments from businesses and caused increased currency volatility.
The sanctions imposed by the US Treasury Department against 52 credit institutions have led to a sharp weakening of the ruble, the Bank of Russia’s review emphasizes.
The exchange rate exceeded the mark of 100 rubles per dollar and 110 rubles per euro, which required the intervention of the Central Bank.
The Central Bank emphasizes that in the long term, the ruble exchange rate is determined by fundamental factors. They also recalled the impact of past sanctions on the currency market.
Changes in liquidity between the exchange and over-the-counter markets have affected spreads between currencies. In August, the spread between the USD/CNY cross rate on the Russian market and USD/CNH on the international market reached 10%.
However, the market managed to adapt and normalize rates. At the moment, the spread does not exceed 0.5%.
The Central Bank does not provide any new forecasts for the dynamics of the ruble exchange rate in its review.
