The ruble has collapsed on the Forex market almost 30% against the dollar and the euro after the announcement by some banks of the SWIFT international interbank communications system and the suspension by the European Union (EU) of transactions with the Central Bank of Russia (BCR).
Shortly after 09:00 local time (06:00 GMT) the ruble lost 28.34% against the greenback, whose exchange rate stood at 107.48 dollars per ruble. The Russian currency fell by 27.02%, to 119.8 euros per ruble. In the case of the dollar, this is a record drop since at least 1993 and in the euro it is the maximum collapse since at least 1994.
The ruble exchange rate began to fall in the face of the military offensive launched last Thursday by Russia in Ukraine. That day the Moscow Stock Exchange plummeted more than 33%. In a first move, the West sanctioned several Russian banks and sovereign debt, and in a second decided exclude some financial institutions from SWIFT.
The MOEX index of Russian parquet starts operating normally at 06.50 (03.50 GMT)but the BCR has indicated in a statement that operations in the foreign exchange market, the money market and the repo market will open today only at 10:00 (07:00 GMT).
Of course, he clarified that he is still evaluating the feasibility of opening operations in other markets, “depending on the development of the situation”. “The decision to open or not to open operations will be announced by the Bank of Russia at 13:00 (11:00 GMT). In case of a positive decision, the auction will open at 15:00 (13:00 GMT),” he explained.
The economic newspaper RBK has reported that the BCR has also decided to ban brokers from selling securities of foreign companies or individuals.
The Bank of Russia has also taken steps to ensure financial stability of the sanctioned banks, such as the release of accumulated capital reserves worth 733,000 million rubles (6,245 million euros or 6,963 million dollars) for consumer loans and mortgages. In addition, as of this Monday, the purchase of gold in the national market resumes, as announced on Sunday.
Source: Lasexta
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