The Russian ruble exchange rate on the international over-the-counter Forex currency market today, November 27, for the first time since March 22, 2022, exceeded 120 rubles per euro.
It subsequently fell slightly to 119.1 euros.
The ruble to dollar exchange rate reached 115 rubles per dollar, subsequently dropping slightly to 113 rubles.
Analysts predict that by the end of the year the ruble could reach 115-120 per dollar, Reuters reports.
It is noted that foreign exchange market players are now waiting to see what the financial authorities’ reaction to the devaluation of the ruble will be.
Possible measures could include increasing foreign currency sales by the central bank by adjusting the parameters of operations under the budget rule and additional capital controls, T-Bank noted.
According to analysts, the fall of the ruble was exacerbated by new sanctions against the Russian financial sector, which disrupted payments for foreign trade, especially for oil and gas, creating a physical shortage of currency in the Russian market.
Most large Russian banks are now under US sanctions, and therefore they are not able to conduct banking transactions in dollars. Therefore, the only option left for foreign exchange trading is to import large quantities of dollar cash.
All trading in dollars and euros moved to the over-the-counter market after Western sanctions were imposed on the Moscow Exchange (MOEX). As a result, trading became unstable and opaque, with most banks disclosing data only to regulators, the agency notes.
Many analysts noted that other than a new round of tensions with the West over Russia’s military actions in Ukraine and new financial sanctions, there were no fundamental reasons for the fall when oil prices – Russia’s main export – are generally stable.
Source: Reuters
Source: Racurs
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