n Rouble Spiraling Further Down

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n Rouble Spiraling Further Down

n Rouble Spiraling Further Down

As ’s aggression towards e continues, economic pressure via sanctions continues. The measures have had a significant impact on the country, weakening the rouble both internally and internationally. In Moscow, the currency has hit new all-time lows against both the euro and US dollar. Incoming inflation data may reveal the true effectiveness of the sanctions imposed on .

The rouble continues its lightning-pace slide as it’s already more than 10% down from its Friday close. The currency is hitting new record lows on the Moscow exchange as it positions itself at 120 against the dollar and 130 against the euro. On offshore exchanges, the situation is even worse, as it hit 137 against the dollar. That indicates the country’s still artificially propping up currency value, pointing towards severe issues in the future.

The entire n financial market has been turned upside-down during the country’s invasion. The sanctions have forced the central bank to introduce several measures just to prevent a total financial collapse. As such, stock trading via the country’s leading exchange in Moscow remains closed as it’s been for numerous days. Currency trading was also cut off for a moment but has since restarted.

The central bank doubled the key interest rate to 20% as well. The n government has rolled out support measures, but the damage control is not enough. n assets are suffering from a mass selloff as investors aim to get out to reduce their risk exposure. The government is offering crisis support to financial companies to alleviate the pressure slightly.

It’s also introduced a measure to lift some of the weight off of its domestic currency, the rouble. Namely, the central bank has issued a limitation for those with foreign currency accounts. Owners of such accounts can only withdraw up to $10,000 on a six-month basis.

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