In recent days, the announcement of a new round of sanctions by Europe and the United States has raised further concerns about the Russian economy. The ruble traded against the dollar in Asian trading hours on Monday after some Russian financial institutions were excluded from the Society for Worldwide Interbank Financial Communication (SWIFT) payment system. The offshore exchange rate plummeted by nearly 30%, hitting another record low.
Exchange rate fluctuations and the risk of cash shortage are continuing to disrupt the economy. The Central Bank of Russia has announced a series of measures to ensure liquidity and curb large fluctuations in the capital market.
As the ruble plummeted, the demand for cash in the market increased significantly.
In addition to the fact that Russians began to queue up in front of ATMs across the country to withdraw money, financial institutions were also facing a boom in buying foreign exchange, and the ruble exchange rate continued to decline.
Russia's central bank previously said it would increase the supply of cash to ATMs to meet demand and promised to provide banks with "uninterrupted" rubles, though the announcement did not mention possible foreign exchange support or restrictions.
(Making Yueziyan)
Responsible editor: [Lu Yan]