MOSCOW--The Bank of Russia said Friday it would extend limits on
currency swaps in an effort to stabilize the ruble, after the
currency hit a record low against the dollar.
Earlier this month, the central bank set a daily limit of $2
billion for currency-swap operations, where banks receive rubles
from the regulator using dollars and euros as collateral. This tool
drew demand only recently after the central bank withdrew a large
chunk of rubles from the interbank market as a result of $30
billion intervention in October.
By extending the limit for the next two weeks, the central bank
said it hopes to deter speculators from betting on a weaker
ruble.
On Friday, the ruble hit an all-time low of 49.90 against the
dollar, after the Organization of the Petroleum Exporting Countries
decided on Thursday to keep its production ceiling unchanged at 30
million barrels a day.
OPEC's decision prompted a slide Brent crude oil prices to below
$72 a barrel for the first time since mid-2010. The sharp decline
in world oil prices poses a substantial risk for Russia, the
world's third-largest oil producer, as the government depends on
oil and gas sales for around half of its annual budget revenue.
By Andrey Ostroukh at andrey.ostroukh@wsj.com
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