"Banking Panic" Possible in Russia Due to New US Sanctions: Russians Already Lining Up in Front of Money Changers
Kyiv • UNN
Today, photos of Russians standing in long lines in front of banks and exchange offices in Moscow and St. Petersburg to withdraw or exchange money are circulating on social media. There are reports that customers have been unable to access their accounts for hours in the online applications of a number of banks, with error messages appearing.
A "banking panic" is possible in Russia, when customers start withdrawing money from their accounts en masse. The reason for this is the new US sanctions, UNN reports with reference to BILD.
Details
On Wednesday, the U.S. Treasury Department imposed sanctions against the Moscow stock exchange, as well as dozens of Russian companies and banks. Washington has toughened penalties for foreigners for transactions with them. The Moscow Exchange has stopped trading in dollars and euros, which were previously used by the Central Bank to determine the exchange rate. Now, the CBR will set the exchange rate according to a new scheme and promises that currency trading in Russia will continue. Shares of the Moscow Exchange fell by more than 15%.
Today, photos of Russians standing in long lines in front of banks and exchange offices in Moscow and St. Petersburg to withdraw or exchange money are circulating on social media. There are reports that customers have been unable to access their accounts for hours in the online applications of a number of banks, with error messages appearing.
According to a BILD columnist, these problems significantly undermine Russians' confidence in banks, and a "banking panic" is possible in Russia, when customers start withdrawing money from their accounts en masse.
