Russia-Ukraine War: Central Bank in Russia Imposes Foreign Shares Sale Ban After US Imposed Heavy Financial Sanctions
Earlier, Russia's central bank appealed for calm amid fears that new financial sanctions could spark a run on its banks - that is, too many people trying to withdraw money, BBC reported.
New Delhi, February 28: Russia's central bank says it has ordered brokers to suspend the execution of all orders by foreign legal entities and persons who want to sell off their Russian investments, such as stocks and shares, BBC reported.
The Bank of Russia also said it had yet to decide whether to open the Moscow Exchange, other than the forex and money market, on Monday. The opening time has already been pushed a few times in the last few hours.
It comes as the rouble plunged to a new record low after Western nations announced new sanctions against Russia over its invasion of Ukraine, BBC reported. Russia Sets Ruble Exchange Rates to Prevent Crash: 101 Rubles for 1 Euro, 90 Rubles for One US Dollar.
Earlier, Russia's central bank appealed for calm amid fears that new financial sanctions could spark a run on its banks - that is, too many people trying to withdraw money, BBC reported.
In a statement, it said: "The Bank of Russia has the necessary resources and tools to maintain financial stability and ensure the operational continuity of the financial sector."
On Saturday, Europe, the US, the UK and Canada announced that the assets of Russia's central bank will be frozen. It has reserves of around $630 bn. The sanctions against the Bank of Russia would stop it from selling assets overseas to support its own banks and companies, BBC reported. Russia’s Central Bank Raises Interest Rate From 9.5% to 20% to Counter Higher Inflation.
Europe, the US and its allies have also announced that a number of Russian banks will be removed from Swift, the international payment system which is pivotal for the smooth transaction of money worldwide.
(The above story first appeared on LatestLY on Feb 28, 2022 01:26 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).