INSUBCONTINENT EXCLUSIVE:
Russians on the streets of Moscow are shrugging off a fresh round of U.S
sanctions that forced the country's largest exchange to halt dollar and euro trade on Thursday, with some arguing that they have no need for
Western currencies."Given that we [already] have sanctions and there are basically no trips abroad, we don't need dollars or euros," Yegor
Danilov, a 36-year-old engineer, told AFP on Thursday, dismissing the impact the new sanctions would have on Russia.Although the Moscow
Exchange suspended dollar and euro trade, companies and individuals in Russia will still be able to buy and sell the currencies through
lenders, and the Russian Central Bank has assured that all deposits in dollars and euros will be safe.But the move does stop deals from
going through a centralized exchange, pushing transactions into less liquid markets, such as direct bank-to-bank agreements or through
specialized brokers and market makers.That is likely to result in higher volatility, commissions and margins, analysts say.'Need to get
stronger'Measures that target Russians' ability to buy and trade foreign currency have historically provoked a strong reaction from the
The exchange rate is seen as a key indicator of the health of the Russian economy.When the West first hit Moscow with sweeping financial
sanctions over its full-scale invasion of Ukraine in February 2022, long lines formed outside banks, and ATMs ran out of dollars and euros
as Russians scrambled to convert their savings into hard currency.But after more than two years of war and sanctions, Russia's economy has
proven to be more resilient than some initially expected
Trade in the Chinese yuan already accounted for a majority of Moscow Exchange's foreign exchange dealings, for example.President Vladimir
echoed on Thursday."Sanctions are getting stronger, but we also need to get stronger to come through this as a winner," said Valery
Strakhov, a 53-year-old tour guide.'Slower, more expensive'A few banks immediately jacked up their exchange rates to as high as 200 rubles
to the dollar after Washington revealed the latest raft of sanctions on Wednesday, spreading fear of a fresh currency crisis across social
dollar on Tuesday, the last trading day before the sanctions were announced."Everybody has been well-prepared for this, so the immediate
effects are moderate," said Anton Tabakh, chief economist at Expert RA, a Moscow-based credit ratings agency."The exchange rate itself is
unlikely to be affected much, except for the fact that in general, it increases the costs in the economy
All operations with foreign currencies become slower, more expensive and more complicated," he added.Those extra costs incurred by
businesses would eventually be passed on to shoppers through price rises, he said, feeding already high inflation.'Opportunity'Both Russia's
Central Bank and the Kremlin have also sought to calm nerves."Companies and individuals may continue to buy and sell U.S
dollars and euros through Russian banks
dollars in accounts remain safe," the regulator said Wednesday.Putin's spokesman Dmitry Peskov said the Russian Central Bank was "ensuring
stability in all markets," state media reported.He also said Moscow was "thinking over" possible retaliatory measures to the United States
over the latest sanctions.Some Russians saw an opportunity in the volatility.Student Ilya Mier said he "follows the political situation" for
that carried the most risk."None of this really bothers me
It doesn't really affect prices, because I know that import substitution is a good thing," he told AFP, backing Moscow's drive to reduce its
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