Russia devalued the ruble during its 1998 financial crisis. The currency, also spelled rouble, was under intense pressure after investors lost confidence in Russia’s finances and the central bank spent reserves defending its exchange-rate band.
On August 17, 1998, the Russian government and central bank widened the ruble’s trading range against the U.S. dollar while announcing debt restructuring and a temporary moratorium on some payments. The move marked the central moment of the ruble crisis, even though the currency’s decline continued afterward.
The ruble did not immediately float without limits. Authorities first tried to manage its fall within the expanded band. On September 2, the central bank abandoned that floating-peg policy and allowed the exchange rate to move more freely. By September 21, the ruble traded at about 21 to the dollar, compared with roughly 6.4 before the crisis measures.
The devaluation made imported goods much more expensive, but it also helped Russian producers compete with imports. Rising oil prices and stronger trade performance later helped Russia’s economy recover.