The Bank for International Settlements (BIS), where the governors of the central banks meet to discuss monetary policy issues, announced this Thursday, March 10, that it suspended the Central Bank of Russia.
In statements to the AFP agency, a spokeswoman for the entity said that she was bending to the international sanctions of suspending the access of the banking establishment of the Russian Federation to “all the services of the BIS”, including the “meetings” of bankers, in the midst of the war in Ukraine.
“The BIS will not be a way to circumvent sanctions,” said the head of the BIS’ Monetary and Economic Department, Claudio Borio, during the publication of his quarterly report last week.
The executive also pointed out that the conflict has “greatly increased uncertainty”, while the prices of energy raw materials have skyrocketed; which would complicate the work of the central bank because “inflation will rise more, at a time when it was already very high, and it will contain growth.”
What is the Bank for International Settlements (BIS)?
Considered the “bank of central banks” was created in 1930 to manage war reparations imposed on Germany by the Treaty of Versailles, the BIS has established itself over time as the “bank of central banks”. The one from Russia was accepted as a member in 1996.
The entity also organizes meetings six times a year to allow them to address this matter on neutral ground and, if necessary, promote coordination in the event of a crisis.
It also offers central banks both services to manage their foreign exchange reserves and very detailed banking statistics on international money flows.
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