Moscow Exchange Suspends Dollar and Euro Trading Due to US Sanctions... 'Ruble Value Plummets'

Major Russian Financial Institutions Included in US Sanctions
Hong Kong Dollar Transactions Also Suspended

On the 13th (local time), the Moscow Exchange (MOEX) in Russia suspended trading in US dollars and euros due to US sanctions, causing fluctuations in Russian stock prices and the value of the ruble.

Russian Exchange Rate
Photo by Yonhap News

The Moscow Exchange announced that from that day forward, it would not trade foreign exchange, precious metals, stocks, and futures markets settled in dollars and euros.

The previous day, the US Treasury and State Departments added more than 300 individuals and entities to the sanctions list for supporting Russia's continued "special military operation" in Ukraine. This list included major Russian financial institutions such as the Moscow Exchange and the National Settlement Depository.

Although Russian authorities tried to mitigate the situation, Reuters reported that the ruble's value fell to 91.75 rubles per dollar, the lowest in about a month. As of the 11th, the ruble was at 89.10 rubles per dollar.

The Moscow Exchange stock price also dropped 15.84% to 212.04 rubles as of 10 a.m. that day. Shares of Sberbank and VTB fell by 4.3% and 5.98%, respectively.

The Russian Central Bank also suspended trading in the Hong Kong dollar from that day. The Central Bank stated, "The Hong Kong dollar is linked to the US dollar and has traditionally been subject to strict regulations," adding, "This measure was taken to reduce risk." It further explained that "companies and individuals can continue to buy and sell dollars and euros at Russian banks," and that dollar and euro trading remains possible in the over-the-counter market.