Russian banking system showing signs of strong recovery
Apr 7, 2022 22:22:22 GMT -5
Post by OmegaMan on Apr 7, 2022 22:22:22 GMT -5
Russian banking system and ruble are showing signs of strong recovery despite sanctions
Thursday, April 07, 2022 by: Cassie B.
Tags: banking system, Collapse, currency, economics, finance, financial fallout, Putin, risk, ruble, Russia, Russian economy, sanctions, SWIFT, Ukraine
This article may contain statements that reflect the opinion of the author
Bypass censorship by sharing this link:
New
citizens.news/607925.html
(Natural News) The Russian ruble and Russia’s banking system are currently showing signs of ongoing recovery despite Western sanctions as Moscow’s reliance on currency controls and energy exports is helping to protect the country’s economy.
Although the ruble initially dropped, it has now rebounded and is approaching its value prior to the war. Shortly after Russia invaded Ukraine on February 24, the ruble dropped from about 80 to the dollar to 120 to the dollar. However, it has now bounced back to 84, according to official rates from the Russian Central Bank.
Economists caution that the official rate is not necessarily an accurate reflection of the ruble’s true value. Because the central bank has effectively banned Russian citizens from exchanging their rubles for dollars until September 9, there is now a black market where the ruble is trading at weaker values than the official rate.
At the same time, the Russian banking system has been stabilizing as some of the panic withdrawals that were seen in the early days of the invasion start to subside. Shortly after sanctions were put in place, ATMs were flooded with citizens trying to withdraw cash amid concerns about a collapse of their banking system and currency. This prompted banks to borrow heavily from the central bank in order to meet the withdrawal demand. However, this borrowing has been subsiding recently, which is an indication that the banking sector is starting to stabilize.
It is worth noting that some of the recovery being seen right now is artificial and can be attributed to the strict limits placed on withdrawals, transfers of hard currencies overseas, and currency exchange by the Bank of Russia. However, we can’t ignore one major factor that is helping Russia significantly, which is its strong gas and oil exports that are bringing in a steady flow of hard currency.
Continued at link
Thursday, April 07, 2022 by: Cassie B.
Tags: banking system, Collapse, currency, economics, finance, financial fallout, Putin, risk, ruble, Russia, Russian economy, sanctions, SWIFT, Ukraine
This article may contain statements that reflect the opinion of the author
Bypass censorship by sharing this link:
New
citizens.news/607925.html
(Natural News) The Russian ruble and Russia’s banking system are currently showing signs of ongoing recovery despite Western sanctions as Moscow’s reliance on currency controls and energy exports is helping to protect the country’s economy.
Although the ruble initially dropped, it has now rebounded and is approaching its value prior to the war. Shortly after Russia invaded Ukraine on February 24, the ruble dropped from about 80 to the dollar to 120 to the dollar. However, it has now bounced back to 84, according to official rates from the Russian Central Bank.
Economists caution that the official rate is not necessarily an accurate reflection of the ruble’s true value. Because the central bank has effectively banned Russian citizens from exchanging their rubles for dollars until September 9, there is now a black market where the ruble is trading at weaker values than the official rate.
At the same time, the Russian banking system has been stabilizing as some of the panic withdrawals that were seen in the early days of the invasion start to subside. Shortly after sanctions were put in place, ATMs were flooded with citizens trying to withdraw cash amid concerns about a collapse of their banking system and currency. This prompted banks to borrow heavily from the central bank in order to meet the withdrawal demand. However, this borrowing has been subsiding recently, which is an indication that the banking sector is starting to stabilize.
It is worth noting that some of the recovery being seen right now is artificial and can be attributed to the strict limits placed on withdrawals, transfers of hard currencies overseas, and currency exchange by the Bank of Russia. However, we can’t ignore one major factor that is helping Russia significantly, which is its strong gas and oil exports that are bringing in a steady flow of hard currency.
Continued at link