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Russian central bank halts US dollar purchases

The regulator will suspend its operations on the foreign exchange market to reduce ruble volatility

The Bank of Russia announced on Wednesday it will suspend purchases of foreign currency on the domestic exchange from November 28 until the end of the year, to reduce market volatility.

The announcement came as the Russian currency slid to near-record lows, reaching 114 rubles against the US dollar on Wednesday.

The regulator also said it will continue to sell foreign currency to replenish the National Wealth Fund. The volume of such operations amounts to 8.4 billion rubles ($74 million) per day, according to the central bank’s statement.

A decision on when to resume foreign currency purchases will be based on “the situation on the financial markets,” the regulator stated.

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