Russian Ruble Hits New Low Due to a Reason from the US

The ruble will hit a new low again in 2024, pushing the Russian currency's fall this fall to nearly 15%, analysts at currency brokerage BCS said.

Russian ruble hits 11-month low against USD and CNY. (Source: Reuters)

According to data from the London Stock Exchange (LSEG), the Ruble fell 0.4% against the USD in the session on October 10, down to 97.4 Rubles per USD.

Previously, on October 9, the Ruble fell to 97 Ruble/USD for the first time since October last year.

On the same day, the Russian currency fell 1.29% against the Chinese Yuan (CNY), to a one-year low of 13.65 Rubles/CNY.

On the Moscow Stock Exchange (MOEX), the Ruble also fell 0.18% against the yuan, trading at 13.71 Ruble/yuan.

Many experts say the Ruble's weakening is due to many factors, including the expiration of the license from the US Treasury Department's Office of Foreign Assets Control (OFAC) on October 12.

This license allows commercial banks to trade with the MOEX exchange.

In June, OFAC imposed sanctions on MOEX and the Russian National Clearing Center (NCC), a move that halted trading in USD and EUR on Russia’s largest stock exchange.

However, the OFAC license allows some transactions between MOEX and NCC to gradually taper off, rather than stop altogether.

These sanctions have blocked all USD and EUR trading on the MOEX exchange, making the yuan the most traded foreign currency in Russia.

However, as the licenses expire, Chinese banks are concerned about the risk of secondary sanctions when dealing with Moscow entities.

Other factors that put pressure on the ruble include falling oil prices in August-September, Russian exporters delaying foreign currency sales due to difficulties in international transactions, as well as an increase in cross-border payments in rubles.

Source: https://baoquocte.vn/dong-ruble-cua-nga-cham-day-moi-boi-mot-ly-do-tu-my-289641.html