Russian c.bank recommends companies transfer ‘unfriendly’ FX holdings

Russian c.bank recommends companies transfer ‘unfriendly’ FX holdings

Summary : National flag flies over the Russian Central Bank headquarters in Moscow, Russia May 27, 2022. Russia’s central bank on Thursday recommended that the government order state companies to transfer their FX holdings in currencies of countries that have targeted Moscow with sanctions to those of countries that have not.

Western nations imposed unprecedented sanctions against Russia after it sent tens of thousands of troops into Ukraine on Feb. 24, restrictions that have severely restricted Moscow’s access to the international economic and global trading systems.

“It is advisable for non-financial organisations to transfer accumulated foreign currency funds in currencies of unfriendly countries to other countries,” the bank said in a financial market report.

National flag flies over the Russian Central Bank headquarters in Moscow, Russia May 27, 2022. REUTERS/Maxim Shemetov

MOSCOW, Aug 4 (Reuters) – Russia’s central bank on Thursday recommended that the government order state companies to transfer their FX holdings in currencies of countries that have targeted Moscow with sanctions to those of countries that have not.The bank also said it would introduce additional measures aimed at reducing banks’ operations in dollars and euros, accelerating a de-dollarisation drive that officials hope can help shield Russia’s economy and citizens from some restrictions.Western nations imposed unprecedented sanctions against Russia after it sent tens of thousands of troops into Ukraine on Feb. 24, restrictions that have severely restricted Moscow’s access to the international economic and global trading systems.”It is advisable for non-financial organisations to transfer accumulated foreign currency funds in currencies of unfriendly countries to other countries,” the bank said in a financial market report.The central bank has ordered some companies to withhold financial reports. On Thursday, it said it was important to resume publishing financial statements, while minimising sanctions risks.

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