OFAC, a division of the US Treasury, added the Moscow Stock Exchange to the sanctions list on June 12. In this context, the trading platform stopped operating in US dollars and euros as of June 13. The sanctions also included the National Clearing Center (NCC) and the National Settlement Depository (NSD).
Experts interviewed by RB.RU believe that the inclusion of NCC, NSD and the Moscow Stock Exchange on the sanctions lists was not an unexpected step, and investors and businessmen should not expect major changes in trade.
Subscribe to RB.RU on Telegram
The Moscow Stock Exchange index fell by 3.5% to 4% at the opening of trading on June 13, and the shares of the platform itself fell by 15% after the inclusion of the Moscow Stock Exchange, the Center National Clearinghouse and the National Settlement Depository on the US SDN list.
Later, part of the fall was recovered due to the favorable situation in international markets and high oil prices. The Moscow Stock Exchange index once again exceeded 3,100 points after falling to 3,030 points.
How the market evaluates sanctions
The inclusion of NCC and the Moscow Stock Exchange on the sanctions lists can bring a clear relief to the Russian financial system, says Yulia Khandoshko, CEO of the broker Mind Money.
“The sanctions against NCC and the Moscow Stock Exchange did not become some kind of unforeseen disaster. The key question now is whether secondary sanctions will appear against the partners of the CIS countries. If they do not exist, the situation will practically not change,” Khandoshko believes.
Financial expert, author of the Telegram channel “Economism”, Alexey Krichevsky, also believes that for businessmen and investors “nothing will change at the moment except the type of currency purchase.” In the coming weeks, the expert predicts volatility and notes that there are now offers for the sale of dollars and euros reaching up to 200 rubles.
How brokers and banks reacted
“Finam” and “BCS World of Investments” have limited the withdrawal of US dollars, Hong Kong dollars and euros from accounts. These coins appear as blocked in Finam accounts.
Raiffeisenbank also suspended the withdrawal of euros, dollars and yuan from brokerage accounts. Furthermore, after the publication, the credit institution announced that it had resumed this functionality for individuals.
Uzbekistan’s Asia Alliance Bank also reported changes. The credit institution posted a message on its Telegram channel that “due to the update of the US sanctions package, all currency transactions related to Russian residents have been suspended.” The bank later deleted this message and the credit institution’s currency exchange department informed customers that they were working “as usual.”
What will happen next
Khandoshko believes that it is impossible not to notice China’s possible reaction: “Given the blockage of the direct exchange of the ruble for the dollar, the logical step would be to exchange the ruble for the yuan and then the yuan for the dollar. . “Both OFAC and China understand this.”
“There is an interesting detail: there is currently a sale of currencies in the futures market. The same yuan, which is listed on the Moscow Stock Exchange, fell below 12 rubles for the first time since the beginning of the year. We can conclude that the increase in the value of the currency will not be too long and there will be opportunities to buy cheaper,” adds Krichevsky.
The head of Mind Money also doubts the significant impact of sanctions on the business of the Moscow Stock Exchange. According to her, the platform “has been focused on trading other assets for a long time.”
The author of the Telegram channel “Economism” also believes that “nothing critical happened” directly for trade.
“The vast majority of brokers still trade only in Russian securities, and instruments using foreign quotes are registered through the NCC, that is, it is impossible to block them. We are talking about futures and options on global indices and commodities. Therefore, the conclusion is simple: what is happening now at ATMs is a widespread panic that must be avoided,” Krichevsky said, adding that “bank cash dollars are not going away anywhere.”
“The importance of new sanctions should not be overestimated. The Russian market and currency trading have been changing for a long time. Everyone was afraid to admit it. It’s good that this has already been recorded. Even the most unpleasant measures are better than the half-measures that the Russian market found itself in,” Khandoshko concluded.
- On June 12, the United States imposed sanctions against the Moscow Exchange and its member group, the National Clearing Center. Due to this, the site decided to suspend operations in US dollars, Hong Kong dollars and euros. Trading of instruments with settlement in these currencies in the stock market, the money market and the standardized derivatives market has also been suspended.
- The Bank of Russia also reacted to the situation. They stated that currency trading is not necessary for the convertibility of the ruble and the free circulation of currencies.
- The Central Bank also noted that the new US sanctions will not affect the volume of foreign exchange earnings from exports nor will they affect the demand for payment of imports. The regulator also assured that the balance in the exchange market will not change.
Author:
Anastasia Marina
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
