Moscow Exchange (MOEX) has halted trading in dollars and euros due to the latest round of sanctions imposed by the US, as Washington attempts to control financial flows supporting Russia's invasion of Ukraine. The US Treasury has announced sanctions against Moscow Exchange Group and its clearing agent, the National Clearing Centre (NCC), Reuters reported.

US Targets Russia's Key Financial Operations

This latest move will effectively suspend all exchange trading and settlement of deliverable instruments in US dollars and euros. The central bank's statement, issued on a public holiday, clarified that these measures are intended to disrupt the financial mechanisms facilitating Russia's military supply chain.

Following this action, Russia's central bank mentioned that the official exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term rates for the dollar and euro will now rely on data from over-the-counter trading, where transactions occur directly between parties. Despite the suspension, the central bank has reportedly urged companies and individuals to continue buying and selling US dollars and euros through Russian banks.

Russia's second-largest exchange, SPB Exchange, had already been subjected to sanctions in late 2023. These sanctions prompted the exchange to halt foreign share trading temporarily and switch to rouble-based settlements. For over two years, the Russian central bank had reportedly been preparing for such scenarios, modeling various impacts from the sanctions with forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term market participants and infrastructure organizations.

This approach included discussions on mechanisms to manage the rouble-dollar exchange rate, ensuring some level of stability even if trading on the MOEX and the NCC was disrupted.

MOEX's Previous Performance

In March, MOEX released its financial results for February 2024, highlighting a remarkable growth in trading volumes compared to the same period of the previous year. Trading volumes on the exchange's markets jumped to RUB 111.4 trillion from RUB 83.6 trillion.

For the FX segment, which constitutes a significant portion of MOEX's activity, trading volume reached RUB 27.7 trillion, representing a notable boost from RUB 19.4 trillion recorded in the corresponding period of 2022. The report disclosed that in February, the spot trades accounted for RUB 10.2 trillion, while swap trades and forwards amounted to RUB 17.5 trillion.