Russia's main exchange said it had suspended trading in the U.S. dollar and euro after President Joe Biden's administration unveiled a raft of measures designed to further disrupt the Kremlin's war in Ukraine.
Starting today, June 13, the Moscow Exchange will not trade in foreign exchange, precious metals, stocks, currencies and futures markets in financial instruments settled in dollars and the single European currency. The exchange’s management company, known as Moex, along with the country’s main settlement center, were targeted by the US restrictions announced on Wednesday.
Increase the share of the yuan
Russian authorities have sought to move away from the dollar and euro, describing them as toxic currencies, amid sanctions imposed over President Vladimir Putin’s crackdown on Ukraine. The yuan’s share of Russian trade has increased, while officials have continued to take steps to discourage companies and individuals from using the currencies of countries that have imposed restrictions.
The Russian central bank said in a statement that transactions in dollars and euros will remain available on the over-the-counter market (a market where financial instruments not listed on a major exchange are often traded). The bank, which acts as the monetary authority, said it would use its own and market data to determine the ruble’s exchange rates against those currencies.
Daily trading in the US dollar began more than three decades ago in Russia. The share of so-called toxic currencies, which include the dollar and the euro, fell to 45.9% in the foreign exchange and trading market in May, while the share of the yuan rose to 53.6%, according to data from the Russian Central Bank.
The central bank said: Companies and individuals can continue to buy and sell US dollars and euros through Russian banks, adding that all their funds in those currencies in accounts and deposits will remain safe.
