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Bank of Russia Rode Ruble’s Rally When War Left Few Options

  • Stronger currency was at heart of approach taken by Nabiullina
  • Central bank readies another rate cut after inflation slowed
The headquarters of Bank Rossii, Russia's central bank, in Moscow.

The headquarters of Bank Rossii, Russia's central bank, in Moscow.

Source: Bloomberg

Updated on

The ruble was one of the first economic casualties of Russia’s war in Ukraine. Soon, it became the central bank’s lifeline.

With stiff capital controls in place, imports collapsing and billions in petrodollars flooding in, a rally in the currency took hold by March. It was then that Governor Elvira Nabiullina decided to harness its strength to subdue inflation, according to people familiar with central bank discussions at the time.