Which 1998 crisis triggered a sharp collapse in Russia’s stock market and ruble?

The 1998 Russian financial crisis triggered a sharp collapse in Russia’s stock market and ruble.

Russia faced falling commodity revenues, weak tax collection, large government borrowing needs, and pressure on its exchange-rate system. The Asian financial crisis also reduced investor appetite for emerging markets. On August 17, 1998, the Russian government and central bank devalued the ruble, restructured domestic debt, and declared a moratorium on some payments.

Russian equities plunged, the currency lost much of its value, and banks and businesses suffered severe stress. The crisis also contributed to the failure of the U.S. hedge fund Long-Term Capital Management, whose highly leveraged positions were exposed to market turmoil.

The Russian episode is not the same as the 1997 Asian crisis, although the two were linked through investor contagion and emerging-market financial pressures.