Russia devalued the Russian ruble during the 1998 Russian financial crisis and stock-market collapse.
On 17 August 1998, the Russian government and central bank announced a de facto devaluation of the ruble, a default on domestic debt, and a temporary moratorium on some foreign debt payments. The exchange-rate band was widened before the currency depreciated sharply.
The crisis followed falling oil and commodity prices, weak tax collection, large fiscal deficits, and the financial aftershocks of the Asian financial crisis. Russia’s stock market had already suffered major losses, and banking-sector stress worsened after the devaluation and debt default.
The ruble was later redenominated in 1998 by removing three zeros, with 1,000 old rubles becoming one new ruble. The event is sometimes called the “ruble crisis,” but the currency’s formal name is the ruble.