The Moscow Exchange announced on Monday that it will start banning the use of dollars as collateral to underwrite transactions, in a continuation of the financial battle between Russia and the countries that imposed economic sanctions on it.
The Russian big board released a statement regarding the new policy with no further details. The move is expected to take effect starting August 29.
This follows after the exchange previously said earlier this month that it will be limiting the use of dollars as collateral from 50% to 25%.
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The policy is being implemented at a time that the Russian ruble is still enjoying its four-year high against the dollar, following its huge slump at the onset of the country’s invasion of Ukraine.
The move is perceived as Moscow’s retaliation and cutting financial dependence on countries that had been calling out its war on Kyiv which is about to enter its 7th month. Several sanctions have been imposed on the country by western states, with the latest being the London Metal Exchange’s ban on Russian nickel in its approved warehouse.
The country is also reportedly classifying soon its gold and foreign reserves as “state secrets“, making the details of which unknown to the public.
Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
