WASHINGTON, 28 February 2022 (AFP) – The United States has banned all transactions with Russia’s central bank – the Treasury Department announced Monday (28) that it has approved immediate implementation and an unprecedented attraction to various Washington allies.
“This decision will have a detrimental effect on all assets held by the Central Bank of Russia in the United States or in the hands of American citizens,” the report said of the move, which will have a major impact on Moscow’s efforts. Protect its currency and support your economy.
Washington imposed the ban before US markets opened.
In connection with similar sanctions adopted by many US allies, this decision will severely restrict the use of Moscow’s large foreign exchange reserves for the purchase of the ruble.
Measures to protect the falling ruble are “no longer possible and ‘Fortress Russia’ is insecure,” said a senior US government official.
The same evidence suggests that these combined sanctions will set a “vicious circle” for the Russian economy: “Inflation will certainly rise, purchasing power will fall, and investment will fall.”
“Our aim is to ensure that the Russian economy shrinks until President Putin decides to continue the invasion of Ukraine,” the senior official added.
The United States yesterday imposed sanctions against Russia’s direct investment fund, a foreign-funded public finance institution led by President Vladimir Putin’s close ally Grill Dmitriev.
“This fund and its administration are symbols of deep corruption in Russia and its influence abroad,” he added.
Russia depreciates to $ 643 billion last weekend, hitting record highs on oil and gas sales
It is not known what percentage of these reserves are in US dollars.
Eddie Fishman, an expert on the Atlantic Council, an American think tank, responded on Twitter that “this is an unprecedented permit” because the Russian central bank can no longer sell excess reserves.
Fishman pointed out that there is also a reservation for large Russian state-owned companies.
“If there is a need to intensify sanctions, it is a factor that needs to be addressed,” he added.
The new restrictions, adopted by the United States and its allies, are aimed at restricting Russia’s ability to retain its currency, weakened by sanctions imposed on its financial sector after the invasion.
The ruble fell. Today, it recorded an all-time low against the dollar and the euro.
Russia’s central bank raised its key interest rate from 9.5% to 20% this morning to protect its economy and currency against Western sanctions.
The Moscow Stock Exchange was closed to avoid a catastrophe between Russian companies’ bonds in other parts of the world.
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