Russian soldiers have major Ukrainian cities surrounded and are beginning to close in. The situation in Ukraine is dire. It’s not great for Russia either. In addition to being ostracized by most countries, the ruble is weakened.
The ruble hit its weakest level ever against the dollar. It will spike inflation.
“Russian bank Tinkoff now offering to exchange rubles for dollars at a rate of 171 rubles per dollar. It was 83 before the European/US announcement about targeting the Russian central bank. The currency market formally opens tomorrow. This is brutal,” Paul Sonne, a reporter for The Washington Post, tweeted.
Air space is being shut down over Russia and popular payment systems like ApplePay will stop working, which sent Russians to ATMs to get rubles.
The U.S. and the European Union this weekend agreed to kick some Russian banks off the SWIFT financial messaging system and freeze the central bank’s reserves.
Putin is facing the harshest sanctions leveled at a major economy in at least a generation, and some of the pain may be seen when markets open Monday.
Russian currency is likely to become even more worthless in the coming days, some experts said, according to Bloomberg.
“I can’t see a scenario where it doesn’t get hammered,” said Paul McNamara, a fund manager at GAM Investments. “I don’t expect effective intervention in terms of pricing, but in terms of reducing legal grounds to sell rubles.”
Russian bank Tinkoff now offering to exchange rubles for dollars at a rate of 171 rubles per dollar. It was 83 before the European/US announcement about targeting the Russian central bank. Currency market formally opens tomorrow. This is brutal. pic.twitter.com/NsTBI4tvTZ
— Paul Sonne (@PaulSonne) February 27, 2022