Russian ruble sinks to record low at less than one cent after Swift ban – ‘Not supported’

Ukraine: Kherson resident reacts to Russian takeover

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The ruble hit a record low of 110 compared to the dollar on Wednesday and fell back to 100 on other platforms. The “catastrophic” economic damage in Russia has been caused by heavy sanctions from the West due to the ongoing Ukraine conflict.

The removal and exclusion of multiple Russian banks from the SWIFT financial services network and international payments system severely affected Russian finance.

The removal from SWIFT was aimed to “harm their ability to operate globally” as it effectively blocks Russia from international trading.

The ruble has been steadily falling since the imposition of the initial sanctions and has continued to break record lows as more banks suspend their services.

Sberbank, a lender bank controlled by the Russian state, pulled out of business in Europe due to threats and public panic that led to a run on deposits as people began withdrawing huge sums of money.

A statement from Sberbank read: “The group’s subsidiary banks have faced abnormal cash overflows and threats to the safety of its employees and branches.”

An announcement also came from The European Central bank who declared its suspension of publishing its data on the euro-ruble exchange rate given the current market conditions.

The statement was issued by the Bank of Italy: “Due to current market conditions, the European Central Bank (ECB) cannot determine a EUR / RUB exchange rate that is representative of prevailing market conditions.

“The ECB therefore decided to suspend publication of the Russian ruble reference rate until further notice. The latest published data is from 1 March 2022.”

Mr Kasyanov warned that the Russian citizens will “turn on the printing press. Hyperinflation and catastrophe for the economy is not far away.”

Stategists at JPMorgan have warned that the next stage of the Russian economy crisis is that Russia could default on public debt.

“Sanctions imposed on Russia have significantly increased the likelihood of Russia government hard currency bond default.”

According to JPMorgan, Russia is due in March to pay off over $700 million government bonds.

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On Wednesday, it was announced that both Dogecoin and Bitcoin are now more valuable than the Russian ruble.

The Vice Prime Minister of Ukraine, Mykhailo Federov launched a fundraising service over the weekend asking for donations to aid the Ukrainians amid the destruction and chaos of the conflict.

The fundraiser has made over $33 million in bitcoin and other crypto currencies that will be used to “contribute to the Ukrainian victory as well as support civil people.”

On Wednesday, Mr Federov tweeted that “Dogecoin exceeded the Russian ruble in value” after its worth dipped below that of 1 cent.

He taunted the Russians by adding: “We start to accept donations in meme coin.

“Now even a meme can support out army and save lives from Russian invaders.”

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