The free fall continues ruble, which loses another 30% against the dollar on Monday. On the opening, the Russian currency was quoted down 27%, at 114,33 against the US currency in international trade. It was the trigger for the new collapse the tightening of sanctions decided by the United States and the European Union after Moscow's invasion of Ukraine.
Russian countermeasures in defense of the ruble
Under these conditions, it seems that the Central Bank of Russia has very limited margins of action to defend the currency. This morning the institute has raised the reference rate on the ruble, bringing it from 9,5 to 20%. At the same time, other emergency measures have also entered into force in the country, such as the obligation for exporters to sell foreign exchange earnings and a temporary ban on non-residents from selling securities.
The note of the Central Bank of Russia
The central institution has tried to allay the fears of citizens with an article reassuring tones:
“The external conditions for the Russian economy have changed radically – it reads – An increase in the key rate will ensure that deposit rates rise to the levels necessary to offset the increase in devaluation and inflation risks. This will help maintain financial and price stability and protect citizens' savings from depreciation”.
The Central Bank has also guaranteed citizens that “all funds” of customers “they are safe and available at any time".
Queues at ATMs
Words that, however, do not seem sufficient to bring the situation back to normal. The financial emergency and the sanctions adopted by the US and the EU, in fact, have triggered panic among many savers, who have stormed ATMs to stock up on cash and secure as many savings as possible.
Since the early hours of the morning, images of long lines at ATMs of major Russian cities. Videos of queues tens and tens of meters long were shot above all in Moscow, St. Petersburg and Khimki.
