Video clips on social media are showing Russians queuing up to purchase U.S. Dollars following the Moscow Exchange’s immediate trading suspension of dollars and euros in response to recent U.S. sanctions.
The Russian central bank announced on Wednesday that trading and settlement in U.S. Dollars and Euros will be halted starting June 13 due to Washington’s restrictive measures against the Moscow Exchange Group.
The U.S. Treasury expanded an executive order by President Joe Biden in December, targeting banks aiding significant transactions with Russia, warning of sanctions on banks dealing with Russian defense firms.
In St. Petersburg, a video posted by Bankrollo, a Telegram channel with over 300,000 subscribers, showed people in long lines waiting at a currency exchange office.
Moscow Exchange stated that individuals and companies could still conduct Dollar and Euro transactions through Russian banks, assuring the safety of all funds in these currencies.
Bankrollo reported a surge in the dollar exchange rate, reaching 50 rubles for buying and 200 for selling at Norvik Bank.
Trading on June 11 saw the dollar at 89.10 rubles and the euro at 95.62 rubles, with trading suspended on June 12 due to a holiday.
A tweet by Jason Jay Smart described the Ruble collapse, mentioning the long queues forming at money changers in St. Petersburg post the U.S. sanctions news.
RUBLE IS CRULLING
⚡️⚡️⚡️ Following the U.S. sanctions, causing the trading halt at the Moscow Exchange, long queues formed outside money changers in St. Petersburg.
👉 Ruble has gone bust.! pic.twitter.com/Im8oLbx7n7
— Jason Jay Smart (@officejjsmart) June 12, 2024
Visegrád 24 described the video as “panic in Russia,” capturing the tense situation in response to the sanctions.
The escalating U.S. sanctions against Russia during President Vladimir Putin’s Ukraine conflict have severely impacted the country’s economy, with frozen foreign exchange reserves and disconnection from SWIFT.
Janet Yellen, the U.S. Treasury Secretary, emphasized the tightening measures on institutions dealing with Russia’s economy, cutting off avenues for evading sanctions and hindering Russia’s access to foreign technologies.
Yellen criticized Russia for sacrificing its future to sustain an unjust war against Ukraine.