Russia Central Bank Responds Swiftly to Sanctions

Feb. 27, 2022 (EIRNS)—The Bank of Russia announced today that as the country’s central bank, it will provide domestic banks with cash and non-cash liquidity in rubles, in response to the U.S.-led sanctions to cut off several unnamed Russian financial institutions from access to SWIFT, as well as other sanctions, reported RT. Its actions are intended to help stabilize and protect the Russian economy.

SWIFT is the main secure messaging service used by financial institutions globally to transmit payment and other financial transactions. It is a cooperative—owned by its member financial institutions—and doesn’t manage accounts on behalf of individuals or financial institutions, doesn’t hold funds from third parties, and doesn’t perform clearing or settlement functions.

A statement released by the Bank of Russia press service assured the nation that, “The Bank of Russia will continuously provide banks with cash and non-cash liquidity in rubles. The REPO (repurchase agreement) auction on Monday [Feb. 28] will be held on an unlimited basis, with full satisfaction of all applications received from banks.

“The regulator added that it will also ‘significantly expand’ its Lombard List, which includes the securities it is ready to accept as collateral for backing credit institutions’ refinancing operations, for ‘maximum coverage of the possible needs of banks in current liquidity.’

“ ‘The Bank of Russia has the necessary resources and tools to maintain financial stability and ensure the operational continuity of the financial sector,’ it said, adding that the country’s banking system is ‘stable, has sufficient capital and liquidity to function smoothly in any situation,’ funds held on bank accounts are safe, and banking services will be provided as usual.”