The collapse of the Russian ruble:
The nation is trying to fight economic sanctions by stopping the sale of most foreign currencies; Meanwhile, the notion is that citizens should allow buying Chinese Fiat Yuan. In a press release from the Central Bank, the Supreme Regulatory Authority announced that it instituted an interim procedure banning the withdrawal of more than $10,000 from foreign currency deposit accounts. The bank added that it would let citizens to cash out more than this amount; however, only if the holding converts into rubles at the date of withdrawal at the exchange rate. Commercial banks were also instructed not to sell foreign currency to individuals during this period.
Due to the news, the ruble fell to an unprecedented mark against the US dollar; Until It returned sharply. The size of the bounceback is uncertain, showing a 53% increase at the moment; Up to a total of $0.12. Investing.com data shows the ruble to a much lower mark; At $0.08, with a total increase of 10%. The central bank mentioned that citizens could deposit funds in foreign currency deposit accounts. They also said that this money would be safe; Accordingly accounted for in the currency in which the narrative or deposit was opened. Reportedly, the terms of the accounts will not change. The counting of interest on detainees will also continue.
Dollar and Sanctions Against Russia
Clearing the dollar from the Russian economy is Moscow’s long-term goal. However, the Kremlin now seems to want to turbo-charge the process – and this can do through the Chinese yuan. Because large-scale desertion of the ruble is now inevitable; It appears that Moscow wants to ensure that citizens do not run away from the dollar. Instead, CNY allocated as an alternative.
According to reports, Russian banks can change their fate with CNY deposits. VTB has started opening deposit accounts in Chinese currency, which offers an annual return of 8%. The bank has begun offering CNY deposit services online and through the app.
Savings accounts are also offered at Chinese state-owned industrial and ICBC Russian branches. The latter allows the Russians to open accounts with a minimum deposit amount of approximately US $ 1.6. For deposits up to three years, the annual interest rate is 0.9-2%.
It is worth noting that the ruble had one of the worst weeks in history. The dollar rose more than 22 rubles to 105 rubles. The market is now supported only by “restrictions on foreign investors.” As well as interest rate hikes and demands on Russian exporters to sell foreign currency traded in US dollars.
Trading on the stock exchange suspended on the Moscow Stock Exchange; Shares rose for the third time since February. According to The Wall Street Journal, the Russian stock market will remain close on Wednesday, according to the Central Bank. However, trading in the foreign exchange market will open at 10 am Moscow time. Money markets that trade short-term loans between banks and other financial institutions will also open up.
Sanctions against the invading country are intensifying. The European Union approved a new round of sanctions targeting the Russian National Wealth Fund, fourteen wealthy people, and more than 140 members of the Russian parliament. It is worth noting that the measures will approve by the EU Ambassadors and adopted by the EU Council soon. Additional measures are also considered in the EU. The standards also clarify the issue of cryptocurrency and complement the list of technologies and goods that cannot export.