[ad_1]
Russians are scrambling to withdraw money from ATMs this week as crippling economic sanctions in response to Russia’s invasion of Ukraine prompt the ruble’s value to hit record lows.
The ruble plummeted as much as 30% to 120 per US dollar on Monday — meaning the Russian currency was worth less than 1 cent. The ruble pared some of its losses but was still down 20% to 102 per US dollar as of midday.
Long lines began forming at ATMs on Sunday as Russians braced for the ruble’s collapse by attempting to withdraw foreign currency. The trend occurred amid fears that banks will began limiting cash withdrawals — or that credit and debit cards could stop functioning entirely.
“I’ve stood in lines for an hour, but foreign currency is gone everywhere, just rubles,” Vladimir, a 28-year-old programmer who waited online at an ATM in Moscow, told Bloomberg. “I got a late start because I didn’t think this was possible. I’m in shock.”
Another unnamed resident of St. Petersburg told Reuters that the local population was “running from ATM to ATM to get cash.”
“Some are lucky, others not so much,” the resident said.
Russia’s Central Bank hiked the country’s benchmark interest rate to 20% from 9.5% in a bid to prop up the ruble and prevent a complete collapse. The bank also halted trading on the Moscow Stock Exchange for the day in response to the widening economic crisis.
The ruble’s collapse occurred as the US and countries around the world enact debilitating penalties on Russia’s economy.
The US Treasury Department and the European Union each froze the Russian Central Bank’s assets abroad. The Biden administration targeted leading Russian banks with severe sanctions.
Western nations also disconnected some of Russia’s financial institutions from the SWIFT international banking system. Additionally, many nations have closed their airspace to Russian flights and enacted sanctions against specific Russian entities and individuals — including Russian President Vladimir Putin.
With Post wires
[ad_2]