https://www.theguardian.com/world/20...ucial-24-hours
Ukraine war: sanctions-hit Russian rouble crashes as Zelenskiy speaks of ‘crucial’ 24 hours
The Russian rouble has crashed more than 40% after trading began on Monday in the wake of unprecedented international sanctions against the country’s financial system over Vladimir Putin’s invasion of Ukraine…..
With restrictions in force limiting how much the Russian central bank can do to prop up the currency, the rouble plunged 41.5% to a record low when the markets opened, sinking to as low as 119 per dollar from 83.7 at its close on Friday. It recovered a little ground later on Monday to stand at 107 to the dollar, a fall of 28%.
Analysts at Rabobank in Singapore said that Monday could see a “complete collapse in the rouble” after the asset freeze on the Central Bank of Russia means it cannot sell foreign currency reserves to support the rouble…..
Russians waited in long queues at ATMs on Sunday, worried that the measures by western countries to punish Putin’s invasion would trigger cash shortages and disrupt payments, bringing home the gravity of the crisis for many ordinary Russians.
“The situation is dire for the Russian economy,” said Christopher Vecchio, senior strategist with IG Group’s DailyFX.com in New York. “Now unable to import or export goods and services thanks to the Swift sanctions, unable to sell foreign currency reserves thanks to the [central bank] asset freeze, and a Russian economy ringfenced from the global financial system, a currency crisis has emerged for Russia. High inflation is coming, as is an immediate lurch into recession.”….