From the Liveblog of
Monday, February 28, 2022
Ruble sinks 26% after SWIFT sanctions against Russia; intensifying bank runs expected
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The ruble plunges to a record low of less than 1 US cent in value as Russia is cut off from the global bank payments system in retaliation for Moscow’s invasion of Ukraine.
The Russian currency drops nearly 26% to 105.27 per dollar, down from about 84 per dollar late Friday.
The US, Japan and other Western nations moved over the weekend to impose additional sanctions against Russia, including restrictions on access for some Russian banks to the SWIFT global bank payments system.
Restrictions on the Russian central bank target its access to more than $600 billion in reserves the Kremlin has at its disposal, hindering its ability to support the ruble after it fell last week to its lowest level ever.
The decline of the ruble will likely send inflation soaring, hurting all Russians and not just the Russian elites who were the targets of earlier sanctions. The resulting economic disruption, if Saturday’s measures are as harsh as described, could leave Putin facing political unrest at home.
Analysts predict intensifying runs on banks by Russians, and falling government reserves as Russians scrambled to sell their targeted currency for safer assets.
The Times of Israel Community.