On 12 June 2024, the United States added the Moscow Exchange, the National Clearing Centre (NCC) and the National Settlement Depository to its list of sanctions against Russia. This action led to a ban, effective 13 June 2024, on trading in USD and EUR and on instruments settled in these currencies. The Central Bank of Russia has since addressed the implications of these on the ruble’s exchange rate.
Historically, the Central Bank of Russia determined the USD/RUB and EUR/RUB exchange rates based on weighted average prices of USD and EUR transactions. Following the sanctions, the Central Bank now relies on bank reports and transactions from digital over-the-counter (OTC) trading platforms to set the exchange rates, in accordance with the Central Bank of Russia Instruction No. 6290-U dated 3 October 2022 "On the Procedure for Determination and Publication by the Central Bank of the Russian Federation of Official Exchange Rates of Foreign Currencies against the Ruble".
Furthermore, the Central Bank of Russia has clarified that transactions in USD and EUR will persist in the over-the-counter market despite sanctions. Companies and individuals can continue to conduct USD and EUR transactions through Russian banks, ensuring that all funds in these currencies within accounts and deposits remain secure.
The Central Bank of Russia emphasized that while the sanctions have altered the structure of trade within the domestic foreign exchange market, they have not impacted the overall volume of foreign currency inflows from exports or the currency demand for import payments.
Currently, Russian banks are trading foreign currency at a spread of RUB 4-7 over the rate established by the Central Bank of Russia.