Russian exchange offices close as ruble rises against dollar following Trump-Putin phone call

Some currency exchange offices in Russia have suspended operations due to a sharp decline in the dollar exchange rate. According to the owners, the break is related to their reluctance to exchange foreign currency at too low a price, so as not to be at a loss when the exchange rate returns to its usual range.

As of February 13, according to the Central Bank's rate, one dollar is worth 94.0485 rubles. On the international Forex market, the dollar-to-ruble exchange rate fell below 90 rubles. Meanwhile, Russian banks are trying not to sell US dollars for less than 97 rubles.

As of 3:40 PM Moscow time on February 13, in exchange offices in Moscow located at Lubyanka and Arbat, as well as in the Tverskoy, Presnensky, and Tagansky districts of the city, the purchase of dollars is being carried out in the range of 90-94 rubles, while the sale is priced at 94-100 rubles. However, in some offices, such as those in the Sokolniki area and near Kursky Station, dollars can be purchased for 87.50 rubles.

Russian stock market rises

The Russian stock market is also rising to local highs. As of 2:10 PM, the Moscow Exchange index exceeds 3200 points, although it was below 3000 points at the beginning of the week. At the same time, analysts warn that the growth is driven by expectations of positive events, but there is no concrete evidence of an imminent improvement in relations.

The sharp strengthening of the ruble is attributed to the telephone conversation between Russian President Vladimir Putin and US President Donald Trump that took place the day before. Market participants view the first contact between the two leaders as a positive signal, offering hope for a swift end to the fighting in Ukraine and a gradual lifting of sanctions.

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The ruble or rouble is the currency unit of Russia and Belarus. Historically, it was the name of the currency of the Russian Empire (the Imperial ruble) and, later, of the Soviet Union (the Soviet ruble). As of 2022, currencies named ruble in circulation include the Belarusian ruble (BYN, Rbl) in Belarus and the Russian ruble (RUB, ₽) in Russia. Additionally, the Transnistrian ruble is used in Transnistria, an unrecognized breakaway province of Moldova. These currencies are subdivided into one hundred kopeks. No kopek is currently formally subdivided, although denga (½ kopek) and polushka (½ denga, thus ¼ kopek) were minted until the 19th century.