Russian Central Bank stops buying foreign currency to counter volatility

Source: Xinhua | 2018-08-24

The Russian Central Bank said Thursday that it has decided not to purchase foreign currency on the domestic market from Aug. 23 to the end of September in order to counter market volatility.

The decision was taken to increase the predictability of the monetary authorities' actions, the bank said in a statement, adding that it has enough tools to preserve financial stability.

As to when to resume the purchase of foreign currency, the bank said it will take into account the situation in the financial markets during September.

Russia's ruble has plunged to its weakest since mid-2016 as a result of Washington's latest decision to impose a new round of sanctions on Moscow, which was expected to take effect around Aug. 22.

Relations between Russia and the West have deteriorated over the poisoning of a former Russian spy in Britain earlier this year. London accused Moscow of involvement in the attack while Moscow denied.