In this framework, the Russian ruble fell to new record lows against the dollar and the euro this Thursday after the rating agencies Fitch and Moody’s downgraded Russia’s sovereign debt rating to the “junk” category.
The ruble fell in the Moscow market more than 9% against the dollar to cost 116.8 units per US currency. Against the euro it fell almost 8%, to stand at 125.1 units. It is the first time that the ruble has traded below 110 units per dollar in Moscow and the first time it has exceeded 123 units per euro. Since Russian troops entered Ukraine on February 24, the ruble has dropped 30% against the dollar.
Russia’s central bank imposed a 30% commission on individual foreign currency purchases on currency exchanges, a move that brokers said appeared aimed at curbing demand for dollars but did little to stem the ruble’s slide. . For their part, rates rise above 20%.
Credit rating agencies Moody’s and Fitch have downgraded Russia’s sovereign debt to ‘B3’ and ‘B’, respectively, placing it in the high-risk or junk bond category. In addition, they keep the country’s rating under review for possible further downgrades. S&P already put Russia in junk bond last week.
Also in its attempt to stop the fall of the currency, the Russian Ministry of Finance has announced that it is suspending purchases of foreign currency and gold for this year, as part of the relaxation of the fiscal rule. The government has also ordered Russian exporters to convert 80% of their foreign exchange earnings into rubles.
Source: Ambito
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