July 18, 2024

The Russian ruble has a record drop in the value of Asian stocks | Economie

2 min read
The Russian ruble has a record drop in the value of Asian stocks |  Economie
The Russian ruble has a record drop in the value of Asian stocks |  Economie

The Russian ruble fell to a record low against the dollar on Monday after Western countries announced a raft of tough sanctions over the weekend to punish Russia for its invasion of Ukraine, including limits on the country’s currency reserves.

The ruble fell to 119.50 to the dollar in Asian trading, a record low for the currency and a sharp 30% drop from Friday’s close. It later recovered to about 110 to the dollar, according to Reuters.

Your Excellency, Russian President Vladimir Putin, His military command ordered the nuclear armed forces to be put on high alert Sunday in response to Western reprisals for its war on Ukraine – the largest attack on a European country since World War II.

Russia’s Central Bank (CBR) announced a series of measures on Sunday to support domestic markets as it struggled to manage the fallout from Sanctions prevent some banks from using the Swift international payment system.

European Union: New sanctions affect 70% of Russian banks

European Union: New sanctions affect 70% of Russian banks

Shares of the Russian Central Bank

The Russian Central Bank said it will resume buying gold on the domestic market, launch an unlimited repurchase auction and ease restrictions on banks’ open positions in foreign currencies.

The currency found some support last week with the first monetary interventions by the Russian Central Bank since 2014, when Moscow annexed Crimea from Ukraine.

Rabobank analysts said that the monetary reserve sanctions removed the meager support of the ruble. “Even gold is not liquid if no one can use the exchange against it. There will be a complete collapse of the ruble today …” they wrote.

Ray Atrell, head of currency strategy at National Australia Bank, said in a note on Sunday that “a collapse in the ruble looks inevitable on Monday” and that there is an increased risk of a Russian debt default as a result of the weekend’s events.

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