"Instead, we will intervene in the currency market at whichever moment and amount needed to decrease the speculative demand,” the bank’s chairwoman, Elvira Nabiullina, said in an interview with Rossiya 24 Monday.

The move is edging towards a floating exchange rate, which the bank hopes to attain by 2015.

“Effective starting November 10, 2014, the Bank of Russia abolished the acting exchange rate policy mechanism by cancelling the allowed range of the dual-currency basket ruble values (operational band) and regular interventions within and outside the borders of this band,” the bank said in a statement Monday.

"As a result of the decision the ruble exchange rate will be determined by market factors, which should promote efficiency of the monetary policy of the Bank of Russia and ensure price stability," the central bank said.

Foreign exchange intervention is still at the bank’s disposal, and is ready to use in the case of “threats to financial stability,” according to the statement.

Propping up the ruble can cost the Central Bank of Russia billions of dollars per day, coming out of the country’s reserve fund. In October alone, the bank was forced to spend $30 billion to defend the weakening ruble. On November 5, the bank announced it had limited the reserves it is willing to spend to inflate the ruble to $350 million per day in order to slash speculation and volatility. The decision triggered a three-day plunge for the Russian currency.

On Monday, the ruble recovered slightly after Russian President Vladimir Putin assured speculative drops would cease in the near future. The Russian currency gained 1 ruble against the dollar and the euro on the announcement.

READ MORE: Putin: Ruble’s ‘speculative jumps’ to stop in near future

The Russian ruble has weakened considerably along with dipping oil prices, as well as the introduction of western sanctions, which bars many Russian companies from long-term borrowing on western capital markets.