As Russia’s economic woes further affect its sovereign currency, creating a volatile environment for the ruble which yesterday experienced a sharp reduction in value, FX companies outside Russia are now beginning to take measures to ensure that exposure to low liquidity and high volatility is mitigated.
Today, Alpari’s UK division announced that it is not currently possible to open USDRUB trades across any of its platforms. Alpari has confirmed in its announcement that the lack of liquidity from its providers, due to extreme levels of volatility in the market, means that USDRUB traders are currently close-only.
Whilst many companies around the world have keenly added ruble pairs to their range of instruments during recent months, circumstances which surround Russia’s economic situation have meant that maintenance of such pairs is no small task.
Alpari’s Russian headquarters has previously suspended ruble trading, subsequently reinstating it, before ensuring that the company seeks new liquidity providers for the USD/RUB pair.
With the substantial hike in interest rates announced yesterday, the road ahead could be uncertain for the ruble.
For the official announcement from Alpari, click here.