The Moscow Exchange raised its margin requirements for trading the Russian ruble across the board as the currency continues to drop like a falling knife in light of an incoming Russian central bank meeting.
The Russian ruble has been on its back for two months now, marking new all-time lows pretty much every single week since the beginning of September. More worryingly, it has surpassed all of the major forecasters' expectations, currently trading at 43.50 rubles per US dollar.
While part of the rise can be attributed to the multi-year highs in the US dollar index, the drop has been accelerating in recent weeks as the value of the currency is suffering from ongoing capital outflows and loss of confidence in the value of the currency by the local population.
In another sign underlining the seriousness of the matter, the Moscow Exchange hit the wires today with an announcement that it is increasing Margin Requirements on Russian ruble major crosses against the US dollar, the euro and the Chinese yuan.
The Russian ruble hit another record low today and is now trading lower by 17% since the beginning of September and over 28% since the start of the year.
The Bank of Russia has resorted to higher interest rates, boosting them to 8% in July as pressure rose on the Russian ruble due to geopolitical tensions in Ukraine and the resulting sanctions for Russian companies and wealthy individuals.
Another major factor affecting the Russian forex market has been the rapid decline in oil prices, which at the time of writing have dropped by 23% since the beginning of July. The Russian government is relying heavily on prices of oil remaining above the crucial $100 mark. Currently, Brent crude oil prices are hovering just above $86 per barrel.
The next meeting of the Bank of Russia is tomorrow and markets are anxiously awaiting what they have to say about the next round of excessive Russian ruble depreciation during the past weeks. Recent talks of a currency peg of the Russian ruble now seem unrealistic at best.
Last time the central bank stated: “Current monetary policy stance will ensure decline in consumer price growth rate to the target of 4% in the medium run.” Since then the rate of inflation continues to rise, now double the 4% target mentioned in the Bank of Russia’s statement.
The Russian ruble has been on its back for two months now, marking new all-time lows pretty much every single week since the beginning of September. More worryingly, it has surpassed all of the major forecasters' expectations, currently trading at 43.50 rubles per US dollar.
While part of the rise can be attributed to the multi-year highs in the US dollar index, the drop has been accelerating in recent weeks as the value of the currency is suffering from ongoing capital outflows and loss of confidence in the value of the currency by the local population.
In another sign underlining the seriousness of the matter, the Moscow Exchange hit the wires today with an announcement that it is increasing Margin Requirements on Russian ruble major crosses against the US dollar, the euro and the Chinese yuan.
The Russian ruble hit another record low today and is now trading lower by 17% since the beginning of September and over 28% since the start of the year.
The Bank of Russia has resorted to higher interest rates, boosting them to 8% in July as pressure rose on the Russian ruble due to geopolitical tensions in Ukraine and the resulting sanctions for Russian companies and wealthy individuals.
Another major factor affecting the Russian forex market has been the rapid decline in oil prices, which at the time of writing have dropped by 23% since the beginning of July. The Russian government is relying heavily on prices of oil remaining above the crucial $100 mark. Currently, Brent crude oil prices are hovering just above $86 per barrel.
The next meeting of the Bank of Russia is tomorrow and markets are anxiously awaiting what they have to say about the next round of excessive Russian ruble depreciation during the past weeks. Recent talks of a currency peg of the Russian ruble now seem unrealistic at best.
Last time the central bank stated: “Current monetary policy stance will ensure decline in consumer price growth rate to the target of 4% in the medium run.” Since then the rate of inflation continues to rise, now double the 4% target mentioned in the Bank of Russia’s statement.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
FMLS:24 | Shaping the Next Era of Financial Evolution
FMLS:24 | Shaping the Next Era of Financial Evolution
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
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Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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