- Ruble Dives to Historic Low, Stocks Crash on Ukraine Fears
- Official Sees Sliding Ruble Adding $10Bln to Russian Treasury
- Weak Ruble Could Push Russian Budget Into Surplus – Report
- Latest Ruble Slump Forces Trading Corridor Adjustment
- Russians Saving More in Rubles Than Dollars – Finance Minister
- Central Bank Tested as Ruble Falls to Record Lows
MOSCOW, March 5 (RIA Novosti) – Russia’s central bank said Wednesday it burnt through a record $11.3 billion during interventions earlier this week on currency markets as the ruble plummeted amid fears of conflict breaking out in Ukraine.
When markets opened Monday, the ruble nosedived to historic lows. The central bank took the extreme step of raising interest rates as it spent more and more of its foreign currency reserves.
The precipitous drop followed a decision by Russia’s parliament Saturday to approve military intervention in Ukraine, ostensibly for peace-keeping operations.
The size of the central bank’s intervention on Monday was four times larger than the previous record set in September 2011, news website Lenta.ru reported.
The regulator sets a target trading band for the Russian currency and is mandated to buy or sell foreign currency in order to keep the ruble within that trading band.
Central bank officials have said that they are aiming to move towards a fully free floating ruble in 2015. The ruble has lost almost 10 percent against the euro-dollar basket since the start of this year.
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The British experience can be instructive for Russia. London retains its British Commonwealth if it wants to use this as a foundation for integration in the future. That’s a valuable lesson for Russian experts who are calling for an end to “ineffective” associations like the CIS, the Russian World and others.