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BBC: The lives of Russians are deteriorating. The Russian ruble has become



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The Russian ruble fell by almost 20% on Sunday, falling to a new record low against the US dollar, BBC reports. The decline in the ruble comes after Western nations announced a severe set of economic sanctions following the invasion of Ukraine.

Western countries have adopted a new set of sanctions against Moscow after the invasion of Ukraine, in particular by the decision to exclude many Russian banks from the Swift interbank platform. Restrictions on the assets of the Central Bank of Russia have also been imposed

From the first trading day since new harsh sanctions were imposed, the Russian ruble fell to a record low against the US dollar. The euro fell by more than 1%, while the price of oil rose. The measures introduced this weekend have increased the financial and social costs of Russia’s invasion of Ukraine.

The situation of Russia and its citizens is deteriorating daily

The Russians are already waiting in long lines, worried that all their bank cards may no longer work or that limits will be imposed on the amount of cash they can withdraw. Some of the European operations of Sberbank, the Russian state bank, are already failing, according to regulators.

The new ban on the ability of Russia’s central bank to use its foreign exchange reserves of about $ 630 billion undermines its ability to defend the ruble. Inflation is likely to rise due to the weakness of the currency. This leaves the central bank with several options, including raising interest rates or limiting the amount of money that can be brought in or out of the country.

Call for calm

Over the weekend, Russia’s Central Bank called for calm amid fears that new financial sanctions could trigger a flight of people from its banks. She said she “has the resources and tools to maintain financial stability and ensure the continuity of the financial sector.”

Last week, the rating agency Moody’s said it was reviewing Russian bonds in order to downgrade them to “junk”, which would put Russia in a league of riskier countries, which usually have to pay more to borrow. Rival credit rating agency Standard & Poor’s has already downgraded the country to undesirable status.