Ruble Rebounds on Central Bank Stability Steps as Sberbank Soars - Bloomberg

Ruble Rebounds on Central Bank Stability Steps as Sberbank Soars - Bloomberg:



"The ruble rallied the most since 1998 and shares of Russia’s largest bank jumped 29 percent in London as the government sold dollars and the central bank said it will help companies meet foreign-currency debt obligations.



The currency gained 11 percent to 60.7495 a dollar by 6:13 p.m. in London, ending a seven-day, 22 percent drop. The Bank of Russia said lenders won’t have to write down the value of assets affected by the weaker ruble and falling bonds, allowing banks to use the third-quarter exchange rate in valuing risk-weighted assets. Shares of OAO Sberbank (SBER), the nation’s largest lender, rose the most on record in London and its bonds rallied.



The central bank measures, which also include the provision of foreign-exchange loans and additional repurchase auctions, come after the Finance Ministry bought rubles today to arrest the worst depreciation since 1998. Russian markets went into freefall yesterday as a surprise interest-rate increase failed to shore up investor confidence. Today’s advance trims the ruble’s slide this year to 45 percent."



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