Russia's ruble sinks as Moscow allows 'friendly' countries to re-enter the bond market

Russian President Vladimir Putin. Getty Images
The ruble fell as the Kremlin allowed "friendly" countries to re-enter its bond market.
Investors from countries that have not participated in sanctions against Russia are allowed to trade in debt securities.
The Russian currency fell as much as 1.5% to 61 against the US dollar on Monday.
The ruble fell early Monday as Russia allowed so-called "friendly" countries to re-enter the Moscow bond market.
The Moscow fiat currency fell as much as 1.5% against the US dollar to 61, while it was also down about 0.2% against the euro.
The Kremlin last week announced plans for investors from countries not participating in sanctions against Russia to trade in debt.
Russia will also convert Global Depository Receipts (GDRs) into shares traded on the Moscow Stock Exchange. Russia's central bank announced on Monday that it wanted to write off the GDR account holders and then credit the shares.
Moscow closed its markets in February to better seal capital outflows after President Vladimir Putin launched the invasion of Ukraine.
And the ruble's recent drop adds to the wild swings the currency has seen after hitting all-time highs and record lows this year.
After Russian troops were deployed to Ukraine, the ruble fell to 121.53 against the dollar, only to recover to 50.01 in June, becoming the best-performing currency in the world. The Central Bank of Russia aggressively hiked interest rates to nearly 20% to protect the country from Western and European sanctions.
Meanwhile, at least six major Wall Street banks have resumed trading in Russian bonds, Reuters reported, after US authorities granted a grace period to investors holding onto the now toxic debt.
JPMorgan Chase, Bank of America, Citigroup, Deutsche Bank, Barclays and Jeffries Financial Group have cautiously re-entered the Russian government and corporate bond markets, Reuters reported on Monday. They are again offering to facilitate trading for customers, the outlet said based on interviews and bank documents.
Read the original article on Business Insider

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