The Ruble Dropped to Record Levels Against Dollar

Last week, the United States, Europe and other allies took steps to exclude some Russian banks from international transactions by removing them from the SWIFT financial messaging system. At the same time, the United States and several allies announced they would move to prevent Russia’s central bank from deploying its reserves to undermine the sanctions.

The drop early Monday put the ruble at record levels, trading as low as 120 per dollar, although the currency had recovered somewhat by afternoon trading in Asia.

A crash of the currency would add to the pain that average Russians may feel from the sanctions. Inflation would be pushed even higher, and the prices of imported goods would surge.

Russia’s central bank tried to project calm over the weekend, saying that the banking system was stable and that it would continue to provide banks with cash to ensure normal operations. It said that services would be normal and that all bank cards would work.

Article source: https://www.nytimes.com/2022/02/27/world/europe/ruble-russias-currency-sanctions.html