Russia’s central bank has been facing sanctions from the West since the start of the campaign in Ukraine. More sanctions are coming. Many customers are trying to withdraw money in advance for fear of creating financial crisis in the banks. The country’s central bank has urged people to remain calm in such a situation.
Russia’s central bank said in a statement that the Bank of Russia had enough resources and equipment to ensure Russia’s economic stability and keep the financial sector afloat, the BBC reported.
Russia launched an attack on Ukraine on 24 February. The European Union (EU), the United States, the United Kingdom and Canada announced the seizure of Russian central bank assets in various European countries on Saturday. At present, the bank has a reserve of about 630 billion (63 trillion) US dollars.
Due to the Western sanctions, the Bank of Russia will not be able to sell assets abroad to help its banks and institutions. The United States, the European Union and other Western nations have also announced that Russian banks will be removed from Swift, the international financial exchange system.
Analysts believe that the markets will be open from Monday after the end of the weekly holiday on Sunday. Then the Russian currency ruble will fall in the market. As a result, the country’s citizens will be more crowded to withdraw money from banks.
Clay Lowry, executive vice president of the Institute of International Finance, said the new sanctions would cause serious damage to Russia’s economy and banking system. Sanctions will exacerbate the country’s financial crisis.