USDRUB analysis new historical high 90.000

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USDRUB analysis new historical high 90.000

USDRUB analysis new historical high 90.000

The reaction of the n Central Bank and tools for stabilizing the currency and the market

’s central bank has announced it will begin intervening in the foreign exchange market. The ruble has fallen to a historical low after n President Vladimir Putin approved what he said was a special military operation in e.

The n currency, government bonds, and stocks sank sharply this morning, prompting the Moscow Stock Exchange to suspend all trade activities, prompting the central bank to announce the first foreign exchange intervention since Crimea’s annexation to  in 2014 to support the country’s financial stability.

“In order to stabilize the situation on the financial market, the Bank of  has decided to start interventions on the currency market,” the central bank said in a statement.

The ruble recorded a record fall against the dollar to 90.000 rubles, while against the euro it fell close to the psychological limit of 100 rubles, reports Reuters.

Before the geopolitical tensions between Moscow and Kyiv began to intensify in October last year, the exchange rate of the n currency was 70 rubles per dollar.

The Bank of  has also decided to expand the list of securities that it will accept as collateral in exchange to provide liquid assets and conduct operations on the interbank market that will provide additional liquidity to the banking sector.

Another tool the central bank has at its disposal to ease the pressure on the ruble is its reference interest rate. It is estimated that the bank will continue with the monetary tightening in order to curb inflation, which the fall of the ruble will probably push up.

Actors in global capital markets expect a new package of harsh Western sanctions against  due to the launch of its military action in e.

EU sanctions on

The EU sanctions against  related to the ian crisis came into force today. These are the first steps in the planned series of retaliatory measures designed to strengthen if n President Vladimir Putin orders an attack on e or moves his troops deeper into that country.

The sanctions are aimed at high-ranking n government officials, several companies, and hundreds of n Duma deputies who voted to recognize the independence of separatist parts of southeastern e.

They mainly consist of freezing the property of those affected and banning their travel to EU countries.

Putin signed a decree recognizing Donetsk and Luhansk in eastern e as independent, but he is not on the sanctions list.

The list includes, among others, Defense Minister Sergei Shoigu, Putin’s chief of staff Anton Vajno, according to a list the AP had access to.

The EU stated that under Shoigu’s command, n troops who held military exercises in the illegally annexed Crimea were placed on the border with e and were ultimately responsible for any military action against e.

Wein is said to play an active role in the Kremlin’s decision-making process by participating in the n Security Council and influencing the president’s decision-making in the field of n defense and national security.

The EU will apply restrictive measures to 351 members of the n Duma who voted on February 15 to appeal to Putin to recognize the independence of the self-proclaimed republics of Donetsk and Lugansk, according to the EU.

The sanctions also affected banks that finance ’s armed forces, Moscow’s ability to access EU capital and financial markets and services, and ban EU trade in the two areas so that “those responsible can feel the economic consequences of their illegal aggression.”

EU High Representative Joseph Borel said that sanctions would hurt  very much. However, Pyotr Tolstoy, the deputy president of the Duma and one of those affected by the sanctions, rejected those measures and warned that  would retaliate with its own measures.

“Every time they apply sanctions against , it makes no sense, and it is safe. We really do not care about those sanctions, “he told Belgian television today.

“It gives the impression that the authorities in Brussels are doing something, and in fact, they are not doing anything,” he said.

This measure has been added to a number of economic and other sanctions imposed on  since it annexed Crimea in 2014. Those sanctions have already affected ’s financial, energy and defense sectors, as well as goods that can be used for civilian and military purposes.

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