As the next two days will be very crucial in Russia-Ukraine crisis, senior journalist Abhijit Roy foresee Russians queuing up in front of their banks to withdraw their money very soon, maybe from today itself
< Russia threatens the world with its nuclear weapons as well as offers to negotiate, Western economic sanctions are beginning to be cut. Its financial resources to fight the war are running out faster than expected. If Ukrainians can hold off for a few more weeks, the Russian economy will be devastated.
It will be interesting to see how its market behaves today.
Ruble's trouble
Meanwhile its posture is falling like a rock. Russian commercial bank Tinkoff was quoting an exchange rate of 164 rubles to dollars on Sunday night for ruble sellers, and 92 for buyers - a massive spread that means people's savings in Russian currency effectively depreciated in value. It will be half
Google, Apple Pay won't work
There have also been warnings by Russian private banks that digital payment apps Apple Pay and Google Pay no longer work, meaning people will be forced to rely on their local cards and increasingly cash their daily needs. will be forced to complete.
Meanwhile, retailers have reported increased sales of consumer electronics and durable goods as people rush to spend their savings before they are made useless by inflation.
Separate their economics
Russia will try to work with China to decouple its economies from the US dollar, something the Chinese have long dreamed of. But it is not going to be easy as China has about US$3 trillion in US debt. In addition, the US is the largest buyer of Chinese products. Europe also buys Russian gas by the dollar.
A crypto opportunity?
The situation may prompt greater use of crypto currencies. Incidentally, Ukraine is one of the top three crypto mining countries in the world.
The biggest risk, however, is what Putin will do if pushed to a corner with economic sanctions. The chilling fact is that Russia enjoyed a massive advantage in low-yield nuclear weapons—the short- or medium-range type, in contrast to the giant, intercontinental missiles that raised fears of global nuclear destruction during the Cold War. . Last year, Brookings noted that Russia has about 1,900 such low-yield weapons, compared to the US's 230; America's arsenal is largely designed to be shot down by warplanes, while at least some of Russia may be on short-range ballistic missiles.