The Russian ruble fell more than 3% against the euro on the Moscow Stock Exchange during Thursday’s session, falling below the historic rate of 100 for the single currency.
The ruble hit more than 102 to the euro in morning trading, according to FX data, making it 3 rubles lower than the previous day’s trade close.
The Russian currency also weakened against the dollar, trading at nearly 94 rubles per greenback. Rates against the euro and the dollar are at their lowest since March 2022.
The central bank could intervene in the foreign exchange market if there are risks to national financial stability, although there are currently no such dangers, Bank of Russia Governor Elvira Nabiullina said Thursday.
The ruble’s depreciation is due to changes in the ratio of Russia’s imports and exports, she explained.
“We have seen that when the ruble rate weakens, various conspiracy theories appear suggesting that this is done on purpose to increase budget revenue. It is in fact the dynamics of foreign trade that largely determines the exchange rate,” Nabiullina said at a financial congress in St. Petersburg.
She described the floating exchange rate as beneficial to the economy, helping it adapt to external shocks. The central bank has tools to smooth short-term fluctuations in the ruble, Nabiullina added.
The currency has fallen sharply since the short-lived rebellion of private military company Wagner. The group, led by Evgeny Prigozhin, launched an insurgency against Russian military leaders on June 23-24.
The ruble has also been under pressure in recent weeks due to lower oil prices and Western sanctions, which limit foreign investment and restrict the currency supply from exporters.
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