The exacerbation of geopolitical tensions between Russia and Ukraine triggered a new movement of risk aversion, causing Russian stocks and the rouble to fall.
Sounds of the boots at the Ukrainian border, the Moscow Stock Exchange sees red | Photo credits: Mark III Photonics / Shutterstock.com
Will Russia invade Ukraine? “ It can happen at any time », according to a senior American official. Tensions on the Ukrainian-Russian border have been simmering for several months but they are now taking a worrying turn. While Moscow is deploying tens of thousands of troops to the Ukrainian border, Washington is calling back the families of diplomats stationed in Kiev and raising the threat of financial sanctions against Russia. They could take the form of a cut in access to the Swift network for Russian banks, which would put them on the margins of the international financial system. In this tense climate, NATO has reinforced the military presence on the border between Ukraine and Russia. On the stock market, fear grips operators.
The ruble falls against the euro and the dollar
The Micex, the main ruble-denominated index of the Russian Stock Exchange, fell nearly 6% on Monday afternoon, while the RTS index, denominated in dollars, fell around 8%, bringing its drop to almost 19%. since 1er January. And what about the ruble. The currency is suffering against the dollar: around 4 p.m., it takes around 80 rubles to get 1 dollar, a first since the fall of 2020. This represents a drop of 1.8% over the day. It takes 90 to get 1 euro. The Central Bank has decided to halt trading in its currency to reduce volatility.
Sign that the concern is great, the Stock Exchange, like the ruble, are battered even as the price of oil remains high, at more than 86 dollars a barrel, which is usually positive for Russian stocks and the currency.
PC