Which date marked Russia’s 1998 decision to devalue the ruble and default on domestic debt?

August 17, 1998, marked Russia’s decision to devalue the ruble and default on domestic debt.

The Russian government widened the ruble’s trading band, announced a 90-day moratorium on some foreign debt payments, and restructured domestic-ruble debt. The announcement became the defining date of the 1998 Russian financial crisis.

Russia faced falling oil and commodity revenues, weak tax collection, large budget deficits, and pressure from short-term government debt. The Asian financial crisis also reduced investor confidence in emerging markets, making it harder for Russia to defend the ruble.

The ruble subsequently lost much of its value, while banks and businesses experienced severe stress. The crisis contributed to the resignation of Prime Minister Sergei Kiriyenko and helped create conditions for a later political shift under Vladimir Putin.