What was the name of the 1998 crisis in which Russia devalued the ruble and defaulted on domestic debt?

The 1998 crisis in which Russia devalued the ruble and defaulted on domestic debt was the Russian financial crisis.

Russia’s government struggled with falling tax revenues, weak economic activity, and the financial aftereffects of the 1997 Asian financial crisis. Lower oil and commodity prices also reduced export income. To defend the ruble, authorities maintained an exchange-rate band while borrowing heavily through short-term government securities.

On 17 August 1998, Russia widened the ruble’s trading band, declared a moratorium on some foreign debt payments, and announced a restructuring of domestic ruble debt. The ruble subsequently lost much of its value, causing severe disruption for banks and businesses.

The crisis also affected international markets. The collapse of the hedge fund Long-Term Capital Management created concern that losses could spread through the global financial system, although the fund’s problems had multiple causes. Russia later recovered as exports and commodity prices improved.