Moscow: The central bank there has made a desperate attempt to handle the Russian currency, the ruble. Under this, the Russian Central Bank has increased its key rate from 9.5 percent to 20 percent. The ruble had lost nearly 26 per cent against the US dollar early Monday after Western countries pulled Russian banks from the SWIFT global payment system.
Steps to stop currency reserves
Following the freeze of Russia’s exchangeable currency reserves by Western countries, the Central Bank took this step to arrest the currency’s decline. However, it is not yet clear how much Russia’s exchangeable currency reserves will be affected by this moratorium. European officials say it will affect half of Russia’s US$640 billion reserves.
Huge fall in ruble
Since the invasion of Ukraine, Russia (Russia attack on ukraine) is becoming financially weak. That is why in the last few days, the Russian currency ruble (Russian currency crash) has come down to 117 against the US dollar. This represents a decline of 41 percent. It is being told that this fall is the result of economic sanctions imposed by the European Union on Russia.
There is a long line outside the banks
Large lines are forming outside banks in view of the falling level of the Russian currency. Panic people want to get their money back. The Russian Central Bank has assured people of uninterrupted withdrawal of money. But, looking at the long crowd in front of the branches of the bank, it seems
Sanctions imposed after attack on Ukraine
The European Union has imposed economic sanctions on Russia after Russia’s attack on Ukraine. Under this, Russia has been excluded from the SWIFT global payment system. This would prevent some Russian banks from running the banking system around the world. Russian imports and exports will also be affected