World Desk, AnyTV, Moscow
Published by: Harendra Chaudhary
Updated Tue, 22 Feb 2022 07:23 PM IST
Summary
After Russia’s latest move, America has announced that it will impose new sanctions on Russia. Under these sanctions, some large Russian banks would be barred from doing dollar transactions. This will make it difficult for them to meet their liabilities in dollars…
Russia knew that recognizing Ukraine’s disputed republics of Donetsk and Hulansk would cost it dearly. Western countries had already warned of strict restrictions, especially in the economic field. According to the information that has now surfaced, Russia had been busy for a long time trying to keep the effects of this ban to a minimum. For this Russian banks received foreign exchange on a large scale.
Russian banks increased forex reserves
Russian rating agency ACRA estimated that Russian banks imported $5 billion worth of foreign currency in December alone. Whereas in December of 2020, only $ 2.65 billion of foreign exchange came to these banks. This has been seen as a sign that Russian banks have systematically increased their foreign exchange reserves.
According to analysts, the US dollar usually accounts for the largest share of such imports. Apart from this, some other currencies are also imported. Anyway, the people of Russia have kept dollars to keep their money safe. The reason for this is their apprehension that the price of the Russian currency ruble may fall drastically at any time.
ACRA senior director Valery Piven told a news agency that his agency has collected foreign currency import data based on reports that Russian banks submit to their country’s central bank every month. These reports reveal that in November last year, Russian banks had only $ 2.1 billion in foreign currency. Whereas in December it increased by about two and a half times.
Sanctions will not have much effect
Piven said- ‘The ratio of foreign exchange assets and liabilities is regulated by the central bank. In such a situation, there is no aspect of concern in front of Russia at the moment. It is said that Russia currently has enough foreign exchange to meet the increase in the demand for cash in the near future.
After Russia’s latest move, America has announced that it will impose new sanctions on Russia. Under these sanctions, some large Russian banks would be barred from doing dollar transactions. This will make it difficult for them to meet their liabilities in dollars.
According to data from the Central Bank of Russia, the dollar’s share of Russia’s total banking foreign assets is 100 billion. The dollar’s share of their total liabilities is 70 billion. In the past 20 years, Russia has reduced the amount of both dollar-linked assets and liabilities. According to a report by American TV channel CNN, ever since the US first imposed sanctions on Russia, the Russian bank had started a concerted effort to reduce its dependence on the dollar. This time with the deepening of the Ukraine crisis, he intensified this effort. The result would be that foreign sanctions on Russia would not have much immediate effect.
Expansion
Russia knew that recognizing Ukraine’s disputed republics of Donetsk and Hulansk would cost it dearly. Western countries had already warned of strict restrictions, especially in the economic field. According to the information that has now surfaced, Russia had been busy for a long time trying to keep the effects of this ban to a minimum. For this Russian banks received foreign exchange on a large scale.
Russian banks increased forex reserves
Russian rating agency ACRA estimated that Russian banks imported $5 billion worth of foreign currency in December alone. Whereas in December of 2020, only $ 2.65 billion of foreign exchange came to these banks. This has been seen as a sign that Russian banks have systematically increased their foreign exchange reserves.
According to analysts, the US dollar usually accounts for the largest share of such imports. Apart from this, some other currencies are also imported. Anyway, the people of Russia have kept dollars to keep their money safe. The reason for this is their apprehension that the price of the Russian currency ruble may fall drastically at any time.
ACRA senior director Valery Piven told a news agency that his agency has collected foreign currency import data based on reports that Russian banks submit to their country’s central bank every month. These reports reveal that in November last year, Russian banks had only $ 2.1 billion in foreign currency. Whereas in December it increased by about two and a half times.
Sanctions will not have much effect
Piven said- ‘The ratio of foreign exchange assets and liabilities is regulated by the central bank. In such a situation, there is no aspect of concern in front of Russia at the moment. It is said that Russia currently has enough foreign exchange to meet the increase in the demand for cash in the near future.
After Russia’s latest move, America has announced that it will impose new sanctions on Russia. Under these sanctions, some large Russian banks would be barred from doing dollar transactions. This will make it difficult for them to meet their liabilities in dollars.
According to data from the Central Bank of Russia, the dollar’s share of Russia’s total banking foreign assets is 100 billion. The dollar’s share of their total liabilities is 70 billion. In the past 20 years, Russia has reduced the amount of both dollar-linked assets and liabilities. According to a report by American TV channel CNN, ever since the US first imposed sanctions on Russia, the Russian bank had started a concerted effort to reduce its dependence on the dollar. This time with the deepening of the Ukraine crisis, he intensified this effort. The result would be that foreign sanctions on Russia would not have much immediate effect.