By Gleb Bryanski and Elena Fabrichnaya
MOSCOW (Reuters) – The Russian ruble rebounded above 100 to the U.S. dollar, trading at 99.50 on Friday, after a decree by President Vladimir Putin opening new payment options to European buyers of Russian gas, allowing thus the resumption of currency flows.
The ruble appreciated by 1.5% against the dollar, according to over-the-counter data from banks. It also rose 2.4% to 13.57, rebounding above 14, against the Chinese yuan in trading on the Moscow Stock Exchange.
Putin's decree means that European buyers of Russian gas, including Hungary and Slovakia, which previously used Gazprombank for their transactions, could now convert their currency into rubles at other banks not subject to sanctions.
US sanctions imposed on Gazprombank on November 22 disrupted the Russian foreign exchange market, leading to a 15% fall in the ruble's exchange rate against the dollar.
The Russian currency is now on track for its best week in four months, suggesting the market has adapted to the sanctions. The ruble has been weakening since August 6, the first day of Ukraine's incursion into Russia's Kursk region.
Russian Finance Minister Anton Siluanov directly linked energy payment problems and US sanctions against Gazprombank to the ruble's weakness, saying volatility would disappear as soon as a solution was found for payments.
“Our foreign trade players are finding ways to settle scores with their counterparts abroad, so I think one more week and everything will be fine,” Siluanov was quoted as saying by Russian media on December 5.
Analysts and traders share this view, saying Putin's decree has unblocked energy payments, giving a boost to the Russian currency.
“The large export revenues, previously blocked due to the new banking sanctions, may have been 'unblocked' and have now hit the market, which is already very restricted,” said a forex trader at a major Russian bank, who requested anonymity. , told Reuters, explaining the reasons for the rise in the ruble.
Putin said this week that up to 90% of Russia's foreign trade is now carried out in rubles and the currencies of “friendly” countries, such as the Chinese yuan. However, some importers still needed dollars and euros, creating domestic demand for both currencies.
Russia's largest sanctioned lenders, including state-controlled Sberbank, can no longer hold and exchange dollars for euros because they cannot have correspondent accounts in the United States and Europe and are cut off from the international system SWIFT.
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