Russian Central Bank readies for dollar exchange trading to stop

Russia's Central Bank currently conducts discussions with participants in the foreign exchange market how to determine the exchange rate of the Russia ruble against the dollar and the euro in the event exchange trading in Russia is terminated. This may happen if the National Clearing Center (NCC) and the Moscow Exchange fall under Western sanctions, Forbes reports.

If such sanctions are implemented, foreign exchange trading will be paralyzed. The Bank of Russia started to prepare for such a scenario, the publication said. An alternative that the Russian Central Bank is considering is the Russian analogue to Bloomberg — a platform where currency quotes of largest banks will flock.

Sanctions against the Moscow Exchange and the NCC are a tough option, in which all client funds in the NCC will be frozen and dollar and euro trading on the Moscow Exchange will be stopped, Forbes also said. The NCC has an estimated $50 billion in client funds, all held in foreign banks.

In the event blocking US sanctions against the NCC are introduced, the currency section of the Moscow Exchange will circulate the currencies of the countries that have not imposed restrictions against Russia. According to market players, the yuan will be the most liquid asset in the currency section.

Earlier, Elvira Nabiullina, the head of the Russian Central Bank, said that cash dollars will continue circulating in Russia even against the backdrop of most severe scenarios.

The Central Bank is discussing with participants in the foreign exchange market how to determine the exchange rate of the ruble against the dollar and the euro in the event of termination of exchange trading. This can happen if the National Clearing Center (NCC) and the Moscow Exchange fall under Western sanctions, Forbes learned.

With such sanctions, foreign exchange trading will be paralyzed, so the Bank of Russia began to prepare for such a scenario, the newspaper notes. The alternative that the Central Bank is considering is the Russian analogue of Bloomberg, a platform where the currency quotes of the largest banks will flock.

Sanctions against the Moscow Exchange and the NCC are "a tough option, in which all client funds in the NCC will be frozen and trading in the dollar and euro on the Moscow Exchange will be stopped,” the source of the publication explained. The NCC has an estimated $50 billion in client funds, all held in foreign banks.

In the event of blocking US sanctions against the NCC, the currency section of the Moscow Exchange will be the place of circulation of the currencies of countries that have not imposed restrictions. According to market players, the yuan will be the most liquid asset in the currency section.

Even in the most severe scenarios of the development of events, the circulation of cash dollars in Russia will be preserved, the head of the Central Bank, Elvira Nabiullina, said earlier.

Subscribe to Pravda.Ru Telegram channel, Facebook, Twitter, YouTube, RSS!

Author`s name Editorial Team
Editor Dmitry Sudakov
*