Home News Finance Moscow Exchange Suspends Dollar, Euro Trading Amid New U.S. Sanctions
FinanceNews

Moscow Exchange Suspends Dollar, Euro Trading Amid New U.S. Sanctions

479

The Moscow Exchange halted trading in U.S. dollars and euros on Thursday following new U.S. sanctions aimed at disrupting Russia’s financial capabilities in its ongoing conflict with Ukraine. The move came as part of a broader set of restrictions targeting over 300 entities to cut off funds to Moscow.

In response to the sanctions, the Russian Central Bank announced it would suspend morning trading on the Moscow Exchange’s foreign exchange, precious metals, and derivatives markets starting Friday until further notice. The National Clearing Center, which facilitates foreign exchange transactions, was also sanctioned.

“Due to the introduction of restrictive measures by the United States against the Moscow Exchange Group… trading on the Moscow Exchange markets will be conducted… with the exception of instruments with settlements in U.S. dollars and euros,” the exchange stated.

The U.S. Treasury Department’s expanded sanctions seek to choke money flow to Russia, affecting entities in Russia and countries like China, Turkey, and the United Arab Emirates. The sanctions will be fully implemented by August 13.

Despite these restrictions, Russian companies and individuals can still trade in dollars and euros through domestic banks, and the Central Bank assured that foreign currency deposits would remain unaffected.

Experts believe the sanctions will not significantly impact the ruble’s exchange rate. Sofia Donets, chief economist at T-Bank Investments, expects the ruble-dollar rate to stay within the 90-95 rubles per USD range. However, increased volatility is anticipated, as noted by Bloomberg’s chief economist for Russia, Alexander Isakov.

The sanctions have reduced competition within the currency conversion market, potentially allowing banks to increase their profit margins. The Moscow Exchange index saw a 3.5-4% decline at the opening of trading on Thursday, with the exchange’s shares dropping by 15%.

Brics News also reported on Thursday that Chinese Yuan was the most traded foreign currency on Russia’s Moscow Stock Exchange after halting all US Dollar and Euro transactions.

Read more: Chinese Automakers Surpass U.S. Counterparts In Global Sales For First Time

 

 

 

About The Author

Related Articles

Despite Empty Booth Setback at TICAD9, Tinubu Regime Falsely Claims Japan Approved ‘Special Visa’ for Nigerians in Kisarazu
NewsPolitics

Despite Empty Booth Setback at TICAD9, Tinubu Regime Falsely Claims Japan Approved ‘Special Visa’ for Nigerians in Kisarazu

As Nigeria’s global image struggles to recover from an avoidable embarrassment after...

Nigerian Passport
NewsTravel

Nigeria’s Passport Hike: How Rising Fees and Western Influence Are Pricing Ordinary Nigerians Out of Global Travel

Nigeria’s recent decision to raise the cost of international passports has sparked...

News

Russia Proposes Establishment Of Nuclear Power Plant in Niger

Russia has proposed building a nuclear power plant in Niger, offering broad...

Rose Gidado, Dual Regulator and Bill Gates-Funded TELA Maize Advocate, Defends GMO Safety With ‘We Won’t Poison Our Own People’
AgricultureNews

Rose Gidado, Nigeria’s GMO Regulator and TELA Maize Advocate, Defends Safety – ‘We Won’t Poison Our Own People’

Rose Gidado, Director at the Department of Agricultural Biotechnology of the National...