The Russian ruble was devalued during the 1998 Russian financial crisis and debt default.
Russia had maintained a managed exchange-rate band for the ruble while facing weak tax collection, falling commodity prices, political uncertainty, and heavy short-term borrowing. The Asian financial crisis also reduced investor appetite for emerging markets and increased pressure on Russia’s finances.
On August 17, 1998, the government devalued the ruble, announced a restructuring of domestic debt, and declared a temporary moratorium on some foreign debt payments. The currency then lost much of its value, damaging banks and businesses with foreign-currency obligations.
The crisis was especially severe because many Russian banks were fragile and depended on short-term funding. Sergei Kiriyenko was prime minister at the time, and the episode contributed to a major political reshuffle. The ruble later stabilized after the devaluation made Russian exports more competitive.