Russian Rouble Falls Nearly 30% Against The Dollar Amid The New Sanction Announcement
The Russian rouble has plunged 29% against the US dollar on Monday. It records low as the market assessed the impact of sanctions on Russia amid the growing invasion of Ukraine.
The rouble was trading as low as 119 per dollar in the morning during Asia hours, but from the previous days, it came to 84 per dollar according to Factset data.
Some of the country’s banks have been banned from the Swift international payment system.
In the current situation of the Russia-Ukraine conflict, European Union along with the United States and their alliance countries has taken of the Russian bank from Swift. For that reason, central Russia has no access to international banks.
It is going to deeply affect the export of oil and gas, on which Russia is majorly dependent.
It is come to know from the Russian central bank that it has created a bar for the country to sell anything into the international market. This kind of situation can cause financial market fallout. That is why the nation is freeing 733 billion roubles in local banks to boost liquidity.
Now there is no sign of lessening the battle in the Russia-Ukraine conflict.
Ari Redbord, the analytics from TRM Lab said, ‘Unless the Russian central bank and Russia’s largest banks – which have already been cut off from correspondent banking – find an alternative means of reaching the global financial system Russia faces Iran and North Korea-style isolation from the global economy.
The conflict has taken Russia into a bigger problem. Moody said they are reviewing the Russian bonds and it is coming to see that currently Russia is one of the riskier countries.
In this scenario, where the Russian currency has become valueless outside the country then Russia’s central bank would probably have to hike interest rates and sell gold. The country is going to do it really with governments that are friendly to them. And that appears to be shrinking by the day.
Glenda Bozeman – Business and Services
Glenda Bozeman writes Business articles for industries that want to see their Google search rankings surge. Her articles have appeared in a number of sites. Her articles focus on enlightening with informative Services sector needs. She holds the degree of Masters in Business and Marketing. Before she started writing, she experimented with various professions: computer programming, assistant marker, and others. But her favorite job is writing that she is now doing full-time.
