Which 1998 stock-market crash followed Russia’s default and ruble devaluation?

The 1998 stock-market crash that followed Russia’s default and ruble devaluation was part of the Russian financial crisis.

On 17 August 1998, Russia devalued the ruble, defaulted on domestic debt, and declared a temporary moratorium on some foreign debt payments. The announcement damaged confidence in Russian assets and caused a severe fall in the country’s financial markets. The crisis also put pressure on banks and the government’s ability to finance its obligations.

Russia’s difficulties were linked to falling commodity prices, weak tax collection, heavy short-term borrowing, and the financial aftershocks of the 1997 Asian crisis. The International Monetary Fund and other lenders had provided assistance before the default, but that support did not prevent the breakdown of the exchange-rate and debt strategy.

The crisis had effects beyond Russia. The failure of the U.S. hedge fund Long-Term Capital Management in the same period intensified concerns about global financial contagion, although the Russian default was not the sole cause of that fund’s troubles.