The 1998 Russian financial crisis began on what date?

The 1998 Russian financial crisis began on August 17, 1998. That day, Russia widened the ruble’s exchange-rate band, restructured domestic debt, and imposed a temporary moratorium on some foreign-debt and banking obligations.

The crisis followed years of fiscal weakness, declining productivity, a rigid exchange-rate policy, and dependence on short-term borrowing. The Asian financial crisis and falling prices for oil and other commodities further reduced Russia’s foreign-exchange earnings and weakened investor confidence.

August 17 is sometimes described as the date of Russia’s default or ruble crisis because several emergency measures were announced together. The government did not simply announce a currency adjustment: it also effectively defaulted on or restructured substantial ruble-denominated debt and sought to prevent a broader banking collapse.

The ruble initially traded within a wider band, but pressure continued. On September 2, the central bank abandoned the floating-peg policy and allowed the currency to float freely. By September 21, the ruble had lost about two-thirds of its value against the U.S. dollar compared with its pre-crisis level.