The Russian rouble is expected to strengthen once temporary speculative factors and market uncertainty subside, but the economy will need to adjust to new US sanctions targeting the banking sector.

Axar.az reports that citing Reuters, it was stated by the Economy Minister Maxim Reshetnikov on Friday.

While the rouble remained mostly stable against major currencies on Friday, it was still at its lowest point since March 2022, the first month of the Ukraine war. Since early August, the currency has fallen by more than a quarter against the US dollar.

“It is evident that adaptation to the new anti-Russian sanctions will be necessary, including changes to banking mechanisms and channels for currency inflows into the Russian market,” Reshetnikov said in a statement.

Reshetnikov statement followed a call from President Vladimir Putin not to panic over the rouble’s fall and a decision by the central bank not to buy foreign currency on the domestic market from Nov. 28 until the end of the year.

The latest US sanctions on Russia’s financial sector hit Gazprombank, which handles payments for Russia’s energy trade with Europe and is the major supplier of Western currencies to the market.

The sanctions created a shortage on the Russian foreign exchange market, which led to panic buying of foreign currencies. Reshetnikov said there were no fundamental reasons for the rouble’s fall.

“We assume that once the market nervousness subsides, the exchange rate will return to its fundamental values,” he said.