Russia's Central Bank Losing the Battle for the Rouble as MOEX Raises RUB Margin Requirements
Wednesday,05/11/2014|09:07GMTby
George Tchetvertakov
The CBR wants a free-floating rouble without the need for regular market interventions by January 2015. However, due to geopolitical factors rouble demand has suffered in 2014 making intervention a necessity that prevents free-falling devaluation.
The Central Bank of Russia (CBR) just announced that the bank has changed its intervention policy for the US dollar-rouble Exchange rate and would now limit the size of its interventions to $350 million a day. The bank confirmed that it will continue to shift the rouble corridor by 5 kopecks after each tranche of $350mln is completed.
The bank has been incredibly active in managing the rate at which roubles are exchanged for US dollars, euros, yuan and gold, in response to extreme selling pressure following a destabilising conflict in the Ukraine and resulting sanctions in tandem with lower oil prices. In the first week of October, the CBR conducted almost $2 billion of currency intervention (RUB buying) in just two days.
One month on, and the USD/RUB rate has advanced (RUB depreciated) by over 12% and stands 20% lower year-to-date. The other issue that has changed is that the CBR has considerably less US dollar reserves on its balance sheet. The realisation of 'resistance if futile' when it comes to FX currency intervention against market forces seems to be dawning at the CBR.
Immediately after the CBR announcement at around 07:00 GMT, the USD/RUB rate rose to a new record high of 44.93 early in the European trading session. Against a basket of currencies including the euro and US dollar, the ruble depreciated by 2.9% to a record low of 50.08.
Russia's central bank also announced the introduction of a new 12-month FX repo auction aimed at providing stability to the Russian banking system and reducing the pressure on the rouble. The first auction is expected to take place in mid-November, with a limit of $10 billion.
MOEX
In related news, MOEX, the largest Russian Stock Exchange, has decided to raise minimum base initial margin requirements for the USD/RUB and EUR/RUB foreign exchange futures contracts as of today. The new requirement for both contracts is being set at 5.5% compared to the previous 4.5%.
The Central Bank of Russia (CBR) just announced that the bank has changed its intervention policy for the US dollar-rouble Exchange rate and would now limit the size of its interventions to $350 million a day. The bank confirmed that it will continue to shift the rouble corridor by 5 kopecks after each tranche of $350mln is completed.
The bank has been incredibly active in managing the rate at which roubles are exchanged for US dollars, euros, yuan and gold, in response to extreme selling pressure following a destabilising conflict in the Ukraine and resulting sanctions in tandem with lower oil prices. In the first week of October, the CBR conducted almost $2 billion of currency intervention (RUB buying) in just two days.
One month on, and the USD/RUB rate has advanced (RUB depreciated) by over 12% and stands 20% lower year-to-date. The other issue that has changed is that the CBR has considerably less US dollar reserves on its balance sheet. The realisation of 'resistance if futile' when it comes to FX currency intervention against market forces seems to be dawning at the CBR.
Immediately after the CBR announcement at around 07:00 GMT, the USD/RUB rate rose to a new record high of 44.93 early in the European trading session. Against a basket of currencies including the euro and US dollar, the ruble depreciated by 2.9% to a record low of 50.08.
Russia's central bank also announced the introduction of a new 12-month FX repo auction aimed at providing stability to the Russian banking system and reducing the pressure on the rouble. The first auction is expected to take place in mid-November, with a limit of $10 billion.
MOEX
In related news, MOEX, the largest Russian Stock Exchange, has decided to raise minimum base initial margin requirements for the USD/RUB and EUR/RUB foreign exchange futures contracts as of today. The new requirement for both contracts is being set at 5.5% compared to the previous 4.5%.
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Finance Magnates Awards 2026 – Nominations Now Open
Finance Magnates Awards 2026 – Nominations Now Open
The Finance Magnates Awards 2026 nominations are now open. 🏆
From fintech innovators to leading brokers, this is where the finance industry celebrates its biggest achievements.
Winners will be announced at the Cyprus Gala Dinner on November 6, 2026.
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https://awards.financemagnates.com/?utm_source=linkedin&utm_medium=video&utm_campaign=nominations-open
#FMAwards #FinanceMagnates #FintechAwards #Fintech #FinanceIndustry
The Finance Magnates Awards 2026 nominations are now open. 🏆
From fintech innovators to leading brokers, this is where the finance industry celebrates its biggest achievements.
Winners will be announced at the Cyprus Gala Dinner on November 6, 2026.
Nominate your brand now.
https://awards.financemagnates.com/?utm_source=linkedin&utm_medium=video&utm_campaign=nominations-open
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Finance Magnates Awards 2026 | Nominations Now Open 🏆#Fintech #FMAwards #TradingIndustry
Finance Magnates Awards 2026 | Nominations Now Open 🏆#Fintech #FMAwards #TradingIndustry
Lights on. Cameras ready. 🎬
Finance Magnates Awards 2026 nominations are now open. 🏆
#FMAwards #FinanceMagnates #FintechAwards #Fintech
Lights on. Cameras ready. 🎬
Finance Magnates Awards 2026 nominations are now open. 🏆
#FMAwards #FinanceMagnates #FintechAwards #Fintech
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In this interview, you'll learn:
* Why Dubai and the MENA region are critical growth markets for fintech and online trading.
* How Exness is addressing the demands of mobile-first, younger traders through engineering, platform stability, and transparent conditions.
* The essential role local talent plays in providing a culturally relevant and compliant user experience.
* Mohammad Amer's outlook on the future of the online trading industry and why stronger controls and systems are necessary.
* Why "trust" isn't just a brand value, but has commercial value—and why he predicts 2026 will be the "Year of Trust."
Key Takeaways:
➡️ The MENA region is rapidly shaping global financial markets.
➡️ New traders expect stability, precise execution, and transparency.
➡️ Local expertise is key to regulatory compliance and user experience.
➡️ Future success belongs to firms capable of meeting rising standards across regulation and platform consistency.
Read the full article at: https://www.financemagnates.com/thought-leadership/exness-sees-trust-as-the-key-theme-for-growth-in-mena-trading-growth-for-2026/
#Exness #MENA #Trading #FinTech #Dubai #OnlineTrading #FinanceMagnates #MohammadAmer #Trust #MobileTrading
Mohammad Amer, Regional Commercial Director at Exness, sits down to discuss the booming MENA financial trading market. Find out why Dubai is key to the company's growth strategy, how a mobile-first generation is changing expectations, and why trust will be the defining theme for traders in 2026.
In this interview, you'll learn:
* Why Dubai and the MENA region are critical growth markets for fintech and online trading.
* How Exness is addressing the demands of mobile-first, younger traders through engineering, platform stability, and transparent conditions.
* The essential role local talent plays in providing a culturally relevant and compliant user experience.
* Mohammad Amer's outlook on the future of the online trading industry and why stronger controls and systems are necessary.
* Why "trust" isn't just a brand value, but has commercial value—and why he predicts 2026 will be the "Year of Trust."
Key Takeaways:
➡️ The MENA region is rapidly shaping global financial markets.
➡️ New traders expect stability, precise execution, and transparency.
➡️ Local expertise is key to regulatory compliance and user experience.
➡️ Future success belongs to firms capable of meeting rising standards across regulation and platform consistency.
Read the full article at: https://www.financemagnates.com/thought-leadership/exness-sees-trust-as-the-key-theme-for-growth-in-mena-trading-growth-for-2026/
#Exness #MENA #Trading #FinTech #Dubai #OnlineTrading #FinanceMagnates #MohammadAmer #Trust #MobileTrading
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Mr. Salih explains how global expansion, the need for deep localisation, and the sheer number of new payment methods, from instant banking to stablecoins, are driving this critical infrastructure shift.
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Altima CTO Sunil Jadhav sits down with Finance Magnates to discuss the core technology challenges facing CFD brokers and proprietary trading firms today.
Jadhav explains how the industry's reliance on batch processing and fragmented systems (where CRMs, risk tools, and trading platforms operate with separate 'sources of truth') leads to delayed data and inconsistent operational decisions. He argues that real-time event processing is essential for managing fast-moving trading activity and risk.
Learn how Altima's unified, event-driven architecture, connecting Altima CRM, Altima Prop, IB systems, and risk management through a single backbone, is designed to provide synchronous data and better operational coordination for modern brokerage and prop firm stacks.
Key Topics:
- Broker and Prop Firm Data Challenges
- The problem of delayed data processing (batch processing vs. real-time events)
- Fragmented systems and conflicting data sources
- Altima's unified, event-driven solution architecture
- The concept of a "risk-aware CRM"
- Built-in risk management in Altima Prop
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