US Cuts-Off Russia's Central Bank From All US Dollar Transactions

 

 CNBC: Biden administration expands sanctions against Russia, cutting off U.S. transactions with central bank 

* The Biden administration announced sanctions against Russia’s central bank on Monday, a move that prohibits Americans from doing any business with the bank as well as freezes its assets within the United States. 

* The new measures will also target the National Wealth Fund of the Russian Federation and the Ministry of Finance of the Russian Federation. 

* A Biden administration official, who spoke on the condition of anonymity in order to share Washington’s thinking, said the new sanctions will take effect immediately. 

WASHINGTON — The Biden administration announced additional sanctions against Russia’s central bank on Monday, a move that effectively prohibits Americans from doing any business with the bank as well as freezes its assets within the United States. 

The new measures will also target the National Wealth Fund of the Russian Federation and the Ministry of Finance of the Russian Federation. A senior Biden administration official, who spoke on the condition of anonymity in order to share Washington’s thinking, said the new sanctions will take effect immediately.  

Read more ....  

Update #1: US cutting off Russia's central bank from US dollar transactions (CNN)  

Update #2: Rattled Putin rants about West's 'empire of lies' as worldwide sanctions reduce ruble to rubble: Desperate leader hikes interest rate to 20% sparking rush on ATMS, US cuts off Russia's central bank - and now even Switzerland slaps Kremlin with penalties (Daily Mail)  

Update #3: U.S. Treasury prohibits transactions with Russia's central bank (The Hill)  

WNU Editor: Russian stock markets are closed indefinitely. The line-ups in front of Russian banks and ATMs started early this morning. The Bank of Russia has responded, but I know it will not be enough .... Bank of Russia increases key rate by 10.5 pp to 20% (TASS). 

There will be short and long term consequences from this US action. The short term will be Russians not having access to foreign currencies, high inflation, shortages of goods. In the long term this undermines the position of the US dollar as the reserve currency of the world, and will accelerate its decline. Bottom line. When this is all over there will be no winners from this crisis.

Subscribe to receive free email updates: