Ukraine Conflict: Russia's Rouble Slumps Nearly 30% After Fresh Sanctions

The new record low for the Russian currency comes after some of the country’s banks were banned from using the SWIFT international payment system

The rouble was indicated to be down 27 per cent at 114.33 per dollar in offshore trading. Image: Getty

New Delhi: Russia’s rouble tanked almost 30 per cent against the dollar on Monday after the Western countries imposed fresh, stricter sanctions on Moscow over its Ukraine invasion.

The rouble was indicated to be down 27 per cent at 114.33 per dollar in offshore trading, according to Bloomberg News.

#UPDATE Russia's ruble plunged nearly 30% against the dollar Monday after world powers imposed fresh, harsher sanctions on Moscow over its invasion of Ukraine.

The ruble was indicated to be down 27% at 114.33 per dollar in offshore trading, according to Bloomberg News pic.twitter.com/GF5xJA81Xl

— AFP News Agency (@AFP) February 28, 2022

According to a report in the BBC, the new record low for the Russian currency comes after some of the country’s banks were banned from using the SWIFT international payment system.

On Sunday, Russia’s central bank appealed for calm amid fears that there could be a run on the country’s banks.

The intention is to further isolate Russia from the international financial system, a joint statement said.

According to a joint statement issued by the leaders of the European Commission, France, Germany, Italy, the United Kingdom, Canada, and the United States, the decision to remove selected Russian banks from the SWIFT messaging system will harm the banks' ability to operate globally. SWIFT is a global member-owned cooperative and the world's leading provider of secure financial messaging services. 

Russia is heavily reliant on the SWIFT system for its key oil and gas exports.

Ari Redbord from blockchain analytics firm TRM Labs told the BBC, “Unless the Russian central bank and Russia’s largest banks, which have already been cut off from correspondent banking, find an alternative means of reaching the global financial system Russia faces Iran and North Korea-style isolation from the global economy.”

The US and European Union said they would exclude some Russian banks from the international bank payments system SWIFT and personally targeted Russian President Vladimir Putin and Foreign Minister Sergei Lavrov. They also banned all transactions with Russia’s central bank.

Meanwhile, the G7 nations, Canada, France, Germany, Italy, Japan, Britain, and the US, warned they would ‘take further steps’ to add to the sanctions already announced if Russia did not cease its operation.