First modification:
After the announcement of the European Union and the United States to ban all transactions with the Central Bank of Russia, the ruble, the Russian official currency, plummeted almost 30% against the dollar and the euro in the Forex market. The war in Ukraine continues to have various effects on the world economy.
Panic exit. The official currency of Russia lost 28.34% against the dollar and placed the exchange rate at 107.48 dollars per ruble after learning of the sanctions by the United States and the European Union against the Central Bank of Russia.
The fall of the currency is historic. In the case of the dollar, this is a record drop since at least 1993 and in the case of the euro it is the biggest drop since at least 1994. The West sanctioned several Russian banks and sovereign debt, to later exclude some financial entities from the system global financial Swift.
The Bank of Russia activated measures to protect its economy from the sanctions that affected the main banks, among them, it raised the interest rate from February 28 from 9.5 to 20% in order to support the financial stability and protect the savings of the population.
“The increase in the interest rate will make it possible to guarantee the increase in interest on deposits to the levels necessary to compensate for inflationary and devaluation risks,” the issuer said in a statement.
The bank said the decision comes after “cardinal changes in external conditions” and that future interest rate decisions will be made “after evaluating the risks of internal and external conditions, as well as the reactions to them.” in the financial markets”.
Likewise, the Russian Ministry of Finance announced that together with the Central Bank they have proposed the compulsory sale of 80% of the foreign currency received by residents for exports, a measure that the Government will adopt from this Monday.
Russia hopes to contain the impact
In Russia, citizens are fearful that the sanctions will affect the economy and have been flocking to banks and ATMs for days.
The Moscow Department of Public Transport warned residents that they could experience problems using Apple Pay, Google Pay and Samsung Pay to pay fares because VTB, one of the sanctioned Russian banks, handles card payments in the metro, Moscow buses and trams.
“Russia has put various mechanisms in place. It already has particularly healthy public finances, so it depends much less on foreign sources for financing. So, although its economy can function self-sufficiently, this does not mean that there will not be a impact, especially on household consumption, on the business climate, but the reality is that it is not going to have the impact expected by the West,” said Christopher Dembik, director of research and strategy at Saxo Bank.
Russian citizens depend on imported goods and the prices of these items are likely to rise due to the conflict over Ukraine. Travel abroad is expected to be more expensive as your rubles buy less foreign currency. Likewise, inflation could be another factor affecting Russian pocketbooks, with supply chain problems hitting Russian factories due to lower demand.
“This is going to quickly reverberate through your economy,” said David Feldman, an economics professor at William & Mary in Virginia. “Everything that is imported is going to see the local cost in currency increase. The only way to stop it will be a heavy subsidy.”
Elvira Nabiulina, head of the Central Bank of Russia, today called on foreign financial market participants to join the Russian analogue of the international interbank communication system Swift, called SPFS.
With EFE and AP
First modification:
After the announcement of the European Union and the United States to ban all transactions with the Central Bank of Russia, the ruble, the Russian official currency, plummeted almost 30% against the dollar and the euro in the Forex market. The war in Ukraine continues to have various effects on the world economy.
Panic exit. The official currency of Russia lost 28.34% against the dollar and placed the exchange rate at 107.48 dollars per ruble after learning of the sanctions by the United States and the European Union against the Central Bank of Russia.
The fall of the currency is historic. In the case of the dollar, this is a record drop since at least 1993 and in the case of the euro it is the biggest drop since at least 1994. The West sanctioned several Russian banks and sovereign debt, to later exclude some financial entities from the system global financial Swift.
The Bank of Russia activated measures to protect its economy from the sanctions that affected the main banks, among them, it raised the interest rate from February 28 from 9.5 to 20% in order to support the financial stability and protect the savings of the population.
“The increase in the interest rate will make it possible to guarantee the increase in interest on deposits to the levels necessary to compensate for inflationary and devaluation risks,” the issuer said in a statement.
The bank said the decision comes after “cardinal changes in external conditions” and that future interest rate decisions will be made “after evaluating the risks of internal and external conditions, as well as the reactions to them.” in the financial markets”.
Likewise, the Russian Ministry of Finance announced that together with the Central Bank they have proposed the compulsory sale of 80% of the foreign currency received by residents for exports, a measure that the Government will adopt from this Monday.
Russia hopes to contain the impact
In Russia, citizens are fearful that the sanctions will affect the economy and have been flocking to banks and ATMs for days.
The Moscow Department of Public Transport warned residents that they could experience problems using Apple Pay, Google Pay and Samsung Pay to pay fares because VTB, one of the sanctioned Russian banks, handles card payments in the metro, Moscow buses and trams.
“Russia has put various mechanisms in place. It already has particularly healthy public finances, so it depends much less on foreign sources for financing. So, although its economy can function self-sufficiently, this does not mean that there will not be a impact, especially on household consumption, on the business climate, but the reality is that it is not going to have the impact expected by the West,” said Christopher Dembik, director of research and strategy at Saxo Bank.
Russian citizens depend on imported goods and the prices of these items are likely to rise due to the conflict over Ukraine. Travel abroad is expected to be more expensive as your rubles buy less foreign currency. Likewise, inflation could be another factor affecting Russian pocketbooks, with supply chain problems hitting Russian factories due to lower demand.
“This is going to quickly reverberate through your economy,” said David Feldman, an economics professor at William & Mary in Virginia. “Everything that is imported is going to see the local cost in currency increase. The only way to stop it will be a heavy subsidy.”
Elvira Nabiulina, head of the Central Bank of Russia, today called on foreign financial market participants to join the Russian analogue of the international interbank communication system Swift, called SPFS.
With EFE and AP
First modification:
After the announcement of the European Union and the United States to ban all transactions with the Central Bank of Russia, the ruble, the Russian official currency, plummeted almost 30% against the dollar and the euro in the Forex market. The war in Ukraine continues to have various effects on the world economy.
Panic exit. The official currency of Russia lost 28.34% against the dollar and placed the exchange rate at 107.48 dollars per ruble after learning of the sanctions by the United States and the European Union against the Central Bank of Russia.
The fall of the currency is historic. In the case of the dollar, this is a record drop since at least 1993 and in the case of the euro it is the biggest drop since at least 1994. The West sanctioned several Russian banks and sovereign debt, to later exclude some financial entities from the system global financial Swift.
The Bank of Russia activated measures to protect its economy from the sanctions that affected the main banks, among them, it raised the interest rate from February 28 from 9.5 to 20% in order to support the financial stability and protect the savings of the population.
“The increase in the interest rate will make it possible to guarantee the increase in interest on deposits to the levels necessary to compensate for inflationary and devaluation risks,” the issuer said in a statement.
The bank said the decision comes after “cardinal changes in external conditions” and that future interest rate decisions will be made “after evaluating the risks of internal and external conditions, as well as the reactions to them.” in the financial markets”.
Likewise, the Russian Ministry of Finance announced that together with the Central Bank they have proposed the compulsory sale of 80% of the foreign currency received by residents for exports, a measure that the Government will adopt from this Monday.
Russia hopes to contain the impact
In Russia, citizens are fearful that the sanctions will affect the economy and have been flocking to banks and ATMs for days.
The Moscow Department of Public Transport warned residents that they could experience problems using Apple Pay, Google Pay and Samsung Pay to pay fares because VTB, one of the sanctioned Russian banks, handles card payments in the metro, Moscow buses and trams.
“Russia has put various mechanisms in place. It already has particularly healthy public finances, so it depends much less on foreign sources for financing. So, although its economy can function self-sufficiently, this does not mean that there will not be a impact, especially on household consumption, on the business climate, but the reality is that it is not going to have the impact expected by the West,” said Christopher Dembik, director of research and strategy at Saxo Bank.
Russian citizens depend on imported goods and the prices of these items are likely to rise due to the conflict over Ukraine. Travel abroad is expected to be more expensive as your rubles buy less foreign currency. Likewise, inflation could be another factor affecting Russian pocketbooks, with supply chain problems hitting Russian factories due to lower demand.
“This is going to quickly reverberate through your economy,” said David Feldman, an economics professor at William & Mary in Virginia. “Everything that is imported is going to see the local cost in currency increase. The only way to stop it will be a heavy subsidy.”
Elvira Nabiulina, head of the Central Bank of Russia, today called on foreign financial market participants to join the Russian analogue of the international interbank communication system Swift, called SPFS.
With EFE and AP
First modification:
After the announcement of the European Union and the United States to ban all transactions with the Central Bank of Russia, the ruble, the Russian official currency, plummeted almost 30% against the dollar and the euro in the Forex market. The war in Ukraine continues to have various effects on the world economy.
Panic exit. The official currency of Russia lost 28.34% against the dollar and placed the exchange rate at 107.48 dollars per ruble after learning of the sanctions by the United States and the European Union against the Central Bank of Russia.
The fall of the currency is historic. In the case of the dollar, this is a record drop since at least 1993 and in the case of the euro it is the biggest drop since at least 1994. The West sanctioned several Russian banks and sovereign debt, to later exclude some financial entities from the system global financial Swift.
The Bank of Russia activated measures to protect its economy from the sanctions that affected the main banks, among them, it raised the interest rate from February 28 from 9.5 to 20% in order to support the financial stability and protect the savings of the population.
“The increase in the interest rate will make it possible to guarantee the increase in interest on deposits to the levels necessary to compensate for inflationary and devaluation risks,” the issuer said in a statement.
The bank said the decision comes after “cardinal changes in external conditions” and that future interest rate decisions will be made “after evaluating the risks of internal and external conditions, as well as the reactions to them.” in the financial markets”.
Likewise, the Russian Ministry of Finance announced that together with the Central Bank they have proposed the compulsory sale of 80% of the foreign currency received by residents for exports, a measure that the Government will adopt from this Monday.
Russia hopes to contain the impact
In Russia, citizens are fearful that the sanctions will affect the economy and have been flocking to banks and ATMs for days.
The Moscow Department of Public Transport warned residents that they could experience problems using Apple Pay, Google Pay and Samsung Pay to pay fares because VTB, one of the sanctioned Russian banks, handles card payments in the metro, Moscow buses and trams.
“Russia has put various mechanisms in place. It already has particularly healthy public finances, so it depends much less on foreign sources for financing. So, although its economy can function self-sufficiently, this does not mean that there will not be a impact, especially on household consumption, on the business climate, but the reality is that it is not going to have the impact expected by the West,” said Christopher Dembik, director of research and strategy at Saxo Bank.
Russian citizens depend on imported goods and the prices of these items are likely to rise due to the conflict over Ukraine. Travel abroad is expected to be more expensive as your rubles buy less foreign currency. Likewise, inflation could be another factor affecting Russian pocketbooks, with supply chain problems hitting Russian factories due to lower demand.
“This is going to quickly reverberate through your economy,” said David Feldman, an economics professor at William & Mary in Virginia. “Everything that is imported is going to see the local cost in currency increase. The only way to stop it will be a heavy subsidy.”
Elvira Nabiulina, head of the Central Bank of Russia, today called on foreign financial market participants to join the Russian analogue of the international interbank communication system Swift, called SPFS.
With EFE and AP