The rouble leapt 12 per cent yesterday as the Russian government and central bank unveiled measures to support the currency and shore up confidence in the country’s financial system.
The largest one-day gain for the rouble since 1998 capped three days of wild gyrations that saw the Russian currency tumble more than 10 per cent on both Monday and Tuesday to hit a record low of 80 to the dollar, only to strengthen dramatically yesterday to less than 60.
The Bank of Russia announced measures to support the banking sector — including liquidity injections, looser capital requirements and the prospect of major recapitalisation — after anxious citizens queued at bank branches to convert their roubles into dollars and euros. “The government and central bank have begun working seriously on stopping this bacchanalia on the currency market,” said Andrei Belousov, an adviser to President Vladimir Putin.