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. Last Updated: 07/27/2016

Run on Ruble Comes to an End

The ruble is likely to remain stable this week after the Russian currency lost a mere two points against the dollar Monday and trading volume dropped 30 percent, according to a currency analyst.


"There won't be any explosive effects this week," said Igor Doronin, currency expert at the Moscow Interbank Currency Exchange.


The ruble closed at 1,562 per dollar Monday on the Moscow exchange, compared to 1,560 Friday.


Initial demand match trading volume of $66.10 million and exceeded initial supply of $59.40 million.


The calm on the market comes on the heels of a crisis last week, when commercial banks besieged the ruble, pushing trading volume up to $139 million on Tuesday and forcing the Central Bank to throw tens of millions of dollars on the market in the ruble's defense.


"That was an attempt by commercial banks to move the market," said Doronin. "They did not succeed."


As the market began to cool Friday, Central Bank Chairman Viktor Gerashchenko told a session of the State Duma that the bank had already spent $1.1 billion of its $4.4 billion hard currency reserves this year to prop up the ruble, more than it spent in the first six months of 1993.


Commercial banks have purchased much of that $1.1 billion, meaning that they would still like to see the ruble rate fall.


But Monday's figures indicate that the private banks have spent all that they can afford on dollars, at least for the time being, said Doronin.


"I think that another attempt like that will not happen in the near future, at least in February," he said. "It all depends on how long it takes the commercial banks to rebuild their reserves."