Russian Central Bank Cancels Morning Trading At Moscow Exchange

For an indefinite period.

The Russian Central Bank has decided to suspend morning trading on the Moscow Exchange, the regulator's website reports.

"Trading sessions will not be held until 09.50 (Moscow time) on the currency market and the market of precious metals, as well as on the derivatives market of PJSC "Moscow Exchange" from June 14, 2024 and until the cancellation of this decision," specified the Central Bank of the Russian Federation.

We remind you that the Moscow Exchange (MOEX) announced the termination of trading in dollars and euros after the U.S. Treasury Department on Wednesday put it on the sanctions list.

The Moscow Exchange is an important part of Russia's financial infrastructure. It is where banks, businesses and investors buy and sell currencies - dollars, euros and yuan. The Russian Central Bank set the ruble exchange rate in the morning, depending on the course of trading. That rate then determined the rate at which currency could be bought from banks.

The new sanctions have effectively broken this system. The Central Bank will now calculate the exchange rate based on reporting data and over-the-counter funds - exchange rate setting will become non-transparent.