MOSCOW: The Russian rouble rebounded past 100 to the US dollar, trading at 99.90 on Friday, after President Vladimir Putin cancelled the option for buyers of Russian gas to convert currency into roubles at US-sanctioned Gazprombank.
The rouble strengthened by over 1% against the dollar, according to over-the-counter data from banks. It was also up by 1% at 14.20 against China’s yuan in trade on the Moscow stock exchange.
Putin’s decree meant that European buyers of Russian gas, including Hungary and Slovakia, who previously used Gazprombank for their transactions, could now convert their currency into roubles in other banks that are not under sanctions.
US sanctions imposed on Gazprombank on Nov. 22 disrupted Russia’s foreign currency market, leading to a 15% fall in the rouble exchange rate against the dollar.
Russian rouble regains over one half of recent slide
The Russian currency now is on track for its best week in four months, suggesting the market has adjusted to the sanctions.
“Previously stalled large export revenues, which were stuck due to new banking sanctions, may have been ‘unblocked’ and have now hit the market, which is already very thin,” a forex trader in a large Russian bank, who declined to be identified, told Reuters, explaining the reasons for the rouble’s rise.
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