Moscow Exchange halted trading in the dollar and euro

The Moscow Exchange will stop trading in currency pairs with the U.S. dollar and the euro from June 13, the trading floor said in an official statement.

“Due to the introduction of U.S. sanctions against the group «Moscow Exchange» from June 13, 2024, trading on the foreign exchange and precious metals markets will be conducted on all instruments, except for currency pairs with the U.S. dollar and euro,” the statement said.

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In the stock and money markets, as well as the SPFI market, trading will continue in all instruments, except those related to settlements in US dollars and euros. The derivatives market will not be affected by the changes.

The Central Bank of Russia explained that after the sanctions are imposed, dollar and euro transactions will be carried out on the OTC market. Other exchange transactions in rubles and other currencies will take place in the usual mode. The Bank of Russia will use bank reports and OTC trading data to determine the official exchange rates of the U.S. dollar and euro against the ruble.

The suspension of dollar and euro trading on the Moscow Exchange could have a significant impact on imports of goods. In the absence of trading in these key currencies, Russian companies will find it difficult to conclude contracts with foreign suppliers, as most international trade is conducted in dollars and euros. These changes may also stimulate the development of domestic production of goods that were previously imported from abroad, but this will take time and significant investment.

The U.S. Finance Ministry on Wednesday announced a new package of sanctions against Russia that includes the Moscow Exchange and its subsidiaries, the National Settlement Depository and the National Clearing Center.

A new package of sanctions against Russia was announced on Wednesday, including the Moscow Exchange and its subsidiaries, the National Settlement Depository and the National Clearing Center.