The Russian Ruble tanks by 27 percent against the dollar. Read to know more about how the Ukraine invasion is hitting the Russian economy.
The Russian Ruble and economic fall down
On Monday, the Russian Ruble plunged by 27 percent at 114.33 per dollar in offshore trading following the Ukraine invasion. The world is imposing newer and harsher sanctions on the country. The European Union and the United States said that they are going to exclude some Russian banks from SWIFT, the international banking payments system. They also personally targeted Putin and Sergei Lavrov, the Russian foreign minister. Additionally, they banned all transactions with the country’s central bank.
On the other hand, G7 nations- Britain, Canada, France, Germany, Italy, Japan, and the United States warned about taking further steps. The G7 countries will probably add to the sanctions if Russia doesn’t take steps for stopping their invasion. If the west keeps giving more sanctions, Russia’s economy might take a devastating blow.
Russian assets plummet down
Several nations have banned Russian official media broadcasts. The country has also been stopped from flying over Europe. “Russia is simply unbankable at this stage and anyone holding Russian assets will find their book value marked at zero till we find a way out of this. ,” stated Saed Abukarsh. Abukarsh is the Chief Portfolio Manager at Dubai’s Ark Capital Management.
In the wake of the Russian forces invading Ukraine, the nation’s assets have plummeted. The ruble’s slump is the worst-performing currency this month. To mull the effects of the harsh transactions, foreign exchange market participants are freezing the Ruble. “When anything like this happens, we cut leverage and tell people to close positions. It’s just too high risk. No trades are coming through at all on the ruble,” stated Nick Twidale. Twidale is the Chief executive for the Asia Pacific region at Forex Broker.