Russia's Moscow Stock Exchange has stopped trading in USD and the Euro

Russia’s main exchange announced it will halt trading in US dollars and euros following the Biden administration's introduction of measures aimed at hindering the Kremlin’s war efforts in Ukraine.

Starting June 13, the Moscow Exchange will cease trading in foreign currency, precious metals, stocks, money, and futures markets for instruments settled in dollars and euros. The exchange, known as Moex, was targeted along with the country's main settlement depository by US restrictions announced on Wednesday.

Russian authorities have been moving away from the dollar and euro, labeling them as "toxic" due to sanctions related to President Vladimir Putin’s campaign against Ukraine. The use of the yuan in trading has increased, and officials have implemented measures to discourage businesses and individuals from using currencies of nations that imposed restrictions.

Transactions involving the dollar and euro will still be available in the over-the-counter (OTC) market, the central bank stated. The monetary authority will use bank and OTC data to determine the ruble’s exchange rates for these currencies.

Bloomberg Economics commented:

“Escalation of sanctions will destabilize the currency market and shift flows towards private non-sanctioned banks. The next step of escalation can be secondary sanctions on foreign banks that help with settlements.”
— Alexander Isakov, Russia economist.

Daily trading in the US dollar began in Russia over three decades ago. The share of so-called toxic currencies, including the dollar and euro, dropped to 45.9% in exchange-based foreign currency trading in May, while the yuan's share rose to 53.6%, according to the Russian central bank’s data.

"Companies and individuals can continue to buy and sell the US dollar and euro through Russian banks," the central bank noted, adding that all funds in those currencies held in accounts and deposits "will remain safe."