Russia hikes interest rates to 20% as rouble dives in value

Western sanctions on reserves prevent further support of rouble

Russia’s central bank more than doubled interest rates on Monday in an attempt to steady the country’s financial markets, after unprecedented western sanctions sent the rouble tumbling as much as 29 per cent. The central bank boosted its main interest rate to 20 per cent from 9.5 per cent in an emergency decision, saying “external conditions for the Russian economy have drastically changed”.

The rouble dropped to almost 118 against the dollar in offshore trading on Monday, according to Bloomberg data, after Russian president Vladimir Putin put his nuclear forces on high alert and the United StatesEurope and UK unleashed sanctions aimed at cutting the country off from the global financial system. Trading in shares and derivatives on the Moscow Exchange was suspended, Russia’s central bank confirmed on Monday. However, Russia-focused shares traded on other markets around the world dropped heavily.
https://www.irishtimes.com/

Removal of Russian banks from SWIFT system

This war is a strategic failure for Putin

The United States and its allies on Saturday moved to block certain Russian banks’ access to the SWIFT international payment system in further punishment of Moscow as it continues its military assault against Ukraine. The measures, which will also include restriction on the Russian central bank’s international reserves, will be implemented in the coming days, the nations said in a joint statement.

“We will hold Russia to account and collectively ensure that this war is a strategic failure for Putin,” the leaders of the European Commission, France, Germany, Italy, Great Britain, Canada and the United States wrote. “We commit to ensuring that a certain number of Russian banks are removed from SWIFT,” Ursula von der Leyen, president of the European Commission, the European Union’s executive, said in a statement to the media. “This will ensure that these banks are disconnected from the international financial system and harm their ability to operate globally.”

https://asia.nikkei.com/