Ruble Drop Forces Halt in Central Bank’s FX Purchases
- Bank of Russia says aims to reduce financial market volatility
- Ruble has been hit by growing tensions between Russia, West
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The Bank of Russia said it’s halting purchases of hard currency in a bid to ease pressure on the ruble, which has slumped amid tensions over Ukraine.
Policy makers are suspending buys of foreign exchange on the open market in order to “reduce financial market volatility,” according to a website statement. The central bank conducts the transactions for the Finance Ministry as part of Russia’s fiscal rule, which is aimed at reducing the economy’s exposure to fluctuations in oil prices.