Russian commercial bank Renaissance Credit—a subsidiary of ONEXIM Group—will seize SWIFT transfers made in dollars and euros starting today. In
Russian commercial bank Renaissance Credit—a subsidiary of ONEXIM Group—will seize SWIFT transfers made in dollars and euros starting today.
In response to the heavy economic sanctions imposed by the West, the Kremlin geared up to foist national banks to devise heavy protectionist economic policies. The decision of Renaissance Credit Bank—which will take effect from today—will officially cut out incoming and outgoing transactions made in USD and euros through the SWIFT system, which is the most usual method used in global payments and settlements.
The Kremlin’s unorthodox intervention in the affairs of Russian national banks will have imminent short-to medium-term monetary impacts. Moscow’s immediate response is in part, to boost the value of the Russian rouble against the Euro and USD. While the Rouble’s value will continue to increase, for the time being, there will be unprecedented monetary issues. Apart from forcing banks to ban transactions in foreign currencies, the Kremlin is pushing its Central bank to keep interest rates at a high level. This will inevitably have an overall impact on Russian national banks as account holders will be less inclined to borrow money moving forward, resulting in a likely economic recession during the long term.