The Russian ruble fell to 119 against the dollar after it was expelled from Swift. With this, the central bank raised the interest rate from 9.5 per cent to 20 per cent
Moscow, First Published Feb 28, 2022, 11:11 PM IST
MOSCOW: Russia’s economy is facing a severe crisis as the country faces tough international sanctions. The country’s financial management has been trying to contain the fall in the Russian currency, the rupee, by raising interest rates. Vladimir Putin has ordered the country’s citizens not to send money abroad to avoid the ruble being abandoned by the people.
The Russian ruble fell to 119 against the dollar after it was expelled from Swift. With this, the central bank raised the interest rate from 9.5 per cent to 20 per cent. The Bank of Russia has raised all key interest rates as the ruble depreciates by about 30 percent. The Bank of Russia has called on people to remain calm as people began to panic. But the people could not find solace in these words of the Bank of Russia. With the withdrawal of the Bank of Russia from Swift, ordinary Russians who opposed the war move against Ukraine also went around.
It was at this point that the Russians began sending money abroad. With this, remittances abroad were banned. Russia’s central bank has spent $ 1 billion on reserves to deal with the crisis. The rupee had lost 14 per cent to 94.60 against the dollar in early trade on Friday. The value of the rupee has risen with the rise in interest rates. The ruble had fallen to 120 against the dollar in the previous session against the central bank. The ruble is currently trading at 106 against the euro. The rupee was trading at 0.72 against the Indian rupee.
The United States, the European Union and their allies are besieging Russia’s central bank. Although not directly involved in the war, efforts by the European Union and the United States to bring Russia under maximum pressure can be seen. The Swift system is critical to Russia’s crude oil exports and gas exports. That is why the opponents are beaten in the mystery position itself. However, the Bank of Russia has said it will do its utmost to maintain the country’s financial stability. But it will not take long for people to realize that they have made these promises in faith. Opposition groups called for a ceasefire on the part of Russia.
Last Updated Feb 28, 2022, 11:11 PM IST
Download App:
