Russian Central Bank to halt foreign currency purchases as ruble losing ground

By Tuba Sahin

ANKARA (AA) – The Russian Central Bank decided on Monday to halt foreign currency purchases to stop the ruble from losing ground amid the tension over Ukraine.

"The Central Bank of Russian Federation decided not to purchase foreign currency on the domestic market as part of the implementation of the fiscal rule mechanism from 15:00 Moscow time on Jan 24," it said in a statement.

Russia's national currency has plummeted against the greenback, with the US dollar/ruble exchange rate nearing 79.00 around 13.10GMT, its lowest level since March 2020

The move aims to boost the predictability of actions of monetary authorities and reduce volatility in the financial markets, the bank said.

Russia recently amassed tens of thousands of troops near Ukraine’s eastern border, prompting fears that Kremlin could be planning another military offensive against its ex-Soviet neighbor.

Moscow has denied it is preparing to invade and said its troops are there for exercises. It has, instead, issued a list of security demands to calm the existing tensions, including Ukraine pledging not to join NATO.