The US has introduced new sanctions against Russia. This has forced an immediate suspension of trading in dollars and euros on its financial marketplace, the Moscow Exchange.
Banks in Russia announce sanctions
The exchange and the central bank rushed out statements on Wednesday which is a public holiday in Russia within an hour of Washington announcing a new round of sanctions. The sanctions looked to cut the flow of money sustaining Russiaโs war in Ukraine.
The central bank said. โDue to the introduction of restrictive measures by the United States against the Moscow Exchange Group, exchange trading and settlements of deliverable instruments in U.S. dollars and euros are suspended.โ
It added that it would use data from over-the-counter trading to set official exchange rates for the dollar and euro.
Central bank calls for calm
The central bank reassured people that their dollar and euro bank deposits were secure.
โCompanies and individuals can continue to buy and sell U.S. dollars and euros through Russian banks. All funds in U.S. dollars and euros in the accounts and deposits of citizens and companies remain safe.โ
The Moscow Exchange (MOEX) said share trading and money market trades settled in dollars and euros would cease. Russiaโs National Clearing Centre (NCC), MOEXโs clearing agent, was also sanctioned.
U.S. targeting Russiaโs financial system
The U.S. Treasury said it was โtargeting the architecture of Russiaโs financial system.โ
Russiaโs central bank has been bracing for such sanctions for around two years. The bank said it was modelling various sanctions scenarios with forex market participants and infrastructure organisations in July 2022.
The immediate impact of the U.S. move was not clear, with Russian financial markets closed for the Russia Day holiday. The rouble closed at 89.10 to the dollar on Tuesday and at 95.62 against the euro.
With inputs from Reuters