Ruble Free Float Gets Dirty as Rout Ends Foreign-Currency Buying
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Russia’s free-floating exchange rate is looking less free by the day.
It’s been a wild ride. The central bank originally gave up its band for the currency back in November, when the ruble was falling to record lows. But a rebound this year of as much as 41 percent brought the currency to 49 per dollar, threatening Russia’s competitiveness. By mid-May, the central bank said it would start buying foreign exchange to replenish reserves.