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Russian central bank to intervene as ruble, Moscow exchange plummet

The measures are intended to provide "additional liquidity to the banking sector" in Russia, with Western sanctions looming after the military operation announced by Russian President Vladimir Putin.

February 24, 2022 / 01:38 PM IST
Smoke is seen coming out of a military installation near the airport, after Russian President Vladimir Putin authorized a military operation in eastern Ukraine, in Mariupol, February 24, 2022. REUTERS/Carlos Barria

Smoke is seen coming out of a military installation near the airport, after Russian President Vladimir Putin authorized a military operation in eastern Ukraine, in Mariupol, February 24, 2022. REUTERS/Carlos Barria

Russia's central bank said Thursday in would intervene as the ruble tumbled to a record low and the Moscow Stock Exchange reopened down 14 percent after Moscow launched a military attack on Ukraine.

"To stabilise the situation on the financial market, the Bank of Russia has decided to start interventions in the foreign exchange market," the central bank said in a statement.

The measures are intended to provide "additional liquidity to the banking sector" in Russia, with Western sanctions looming after the military operation announced by Russian President Vladimir Putin.

"The Bank of Russia will ensure the maintenance of financial stability and continuity of the operation of financial institutions, using all necessary tools," it said.

The central bank added that it and other financial institutions "have clear action plans for any scenario."

Close

The announcement came as the ruble-dominated Moex index opened down 13.97 percent, according to the exchange's website, while the dollar-dominated RTS was down 20.16 percent.

The exchange had announced a temporary suspension of trading earlier on Thursday.

The ruble meanwhile fell by nine percent to 90 against the US dollar at 0542 GMT, hitting an all-time low minutes after Putin announced the military operation.

It then bounced back slightly, but remained down 5.4 percent from the previous day's close as of 0707 GMT.



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