Russia’s central bank effectively abandoned the trading corridor for the ruble on Wednesday, halting big interventions that had seen it spend billions a day to prop up a currency driven lower by sanctions and falling oil prices.
The bank announced it would limit daily interventions to just $350 million a day, saying this would mean the currency’s price would now largely be set by the market, although it stopped short of formally abolishing the trading corridor.
The ruble, which has already lost almost a quarter of its value since the middle of this year, promptly fell by around 1.5 percent against the dollar on Wednesday.
Plunging oil prices and Western sanctions over the Ukraine crisis have shriveled Russia’s exports and investment inflows, driving the currency down.
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