Russia’s central bank has called on companies to reduce their holdings in “unfriendly” countries’ currencies. They should be transferred to currencies of countries that have not imposed sanctions on Russia, as the Russian central bank announced in a financial market report today.
Russia describes states as unfriendly if they have imposed sanctions on the country. It is advisable for non-financial organizations to transfer such accumulated money in foreign currencies of unfriendly countries into currencies of other countries, the currency watchdogs said.
Less banking in dollars and euros
The Central Bank of Russia also announced further steps to scale down banks’ operations in dollars and euros. Among other things, this is intended to push back the US currency in Russia in the hope that this could help shield the Russian economy and citizens from some of the sanctions.
Western countries have responded to Russia’s war of aggression against Ukraine, which began on February 24, with sweeping sanctions. The Russian government, on the other hand, speaks of a “special military operation” in Ukraine, which aims to demilitarize and denazify the country.
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