MOSCOW: The Russian rouble rebounded past 100 to the US dollar, trading at 99.50 on Friday, after a decree by President Vladimir Putin which opened new payment options for European buyers of Russian gas, allowing foreign currency flows to resume.
The rouble strengthened by 1.5% against the dollar, according to over-the-counter data from banks. It was also up by 2.4% at 13.57, rebounding past 14, 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.
The Russian currency now is on track for its best week in four months, suggesting the market has adjusted to the sanctions. The rouble has been weakening since Aug. 6, the first day of Ukraine’s incursion into Russia’s Kursk region.
Russia’s Finance Minister Anton Siluanov directly linked problems with energy payments and US sanctions against Gazprombank to the rouble’s weakness, saying the volatility will disappear as soon as a solution for payments is found.
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