The Russian government announced today, Saturday, that it has "decided to extend regulations requiring 43 major Russian goods groups to convert at least 80% of their foreign currency revenues into rubles until the end of April 2025." The government indicated that "the decision will contribute to maintaining the stability of the exchange rate and the strength of the Russian financial market."
This comes shortly after the West froze approximately $300 billion of Russia's international reserves and effectively prevented its major banks from trading internationally. By boosting demand for the Russian ruble in a period marked by significant economic uncertainty, the measures helped avoid a rush on the currency and the outbreak of a major financial crisis. Moscow has gradually eased restrictions over the years 2022 and 2023.
However, after a new bout of volatility that saw the currency's value drop to over 100 against the US dollar, Russian President Vladimir Putin reactivated the compulsory foreign currency sales decision for six months last October. The ruble is currently trading at approximately 93 against the US dollar.
