Which currency was devalued at the start of Russia’s 1998 financial crisis?

The Russian ruble was devalued at the start of Russia's 1998 financial crisis.

On 17 August 1998, Russia widened the ruble's trading band, effectively devalued the currency, and announced a moratorium on some foreign debt payments. The government and central bank were struggling with large fiscal deficits, weak tax collection, falling commodity prices, and pressure on foreign reserves.

The announcement shook domestic and international investors. Russian banks faced severe stress, government securities became difficult to service, and confidence in the financial system deteriorated. The crisis also followed the 1997 Asian financial crisis, which had reduced appetite for risk in emerging markets.

The ruble's collapse is sometimes confused with a conventional stock-market crash, but it was a broader sovereign, banking, and currency crisis. Russian equities also fell sharply, and the financial shock had international consequences. The episode contributed to the failure of Long-Term Capital Management in the United States, although that fund's problems had several causes.