Posted on 02/27/2022 2:13:21 PM PST by BusterDog
MOSCOW — The Russian central bank has ordered market players to reject foreign clients’ bids to sell Russian securities from 0400 GMT on Monday, according to a central bank document seen by Reuters.
(Excerpt) Read more at financialpost.com ...
“You did want it, or else, why did you buy it?”
US pension funds, deeply saddened.
Foreign central banks earlier declared that Russian USD holdings are sanctioned and could not be used. For example, if the Russian central bank is holding a US Treasury Bond, they probably would not be allowed to sell it.
That would mean for them liabilities on the other side will be affected also - ie) if we can’t trade to access US Dollars from the Federal Reserve, then those of you demanding US Dollars from us won’t be able to get it.
Fed.gov and the Federal Reserve cutting off Russian Central Bank US$ access is a BIG DEAL. Its never happened to an OECD country before.
Its basically triggering a huge default in the system and on Wall Street - think Lehman Brothers in 2008
It will also make EVERY central bank now understand - your reserves, your savings - are a political tool.
Interesting times....
VIDEO: Long lines in Moscow for ATM withdrawals Sunday
https://rumble.com/vw0aq5-long-lines-in-moscow-for-atm-withdrawals..html
Toilet paper is cheaper and works better
BP offloads its nearly 20% stake in Russia’s Rosneft
https://www.cnbc.com/2022/02/27/bp-offloads-stake-in-russias-rosneft.html
Maybe not. Maybe a bigger writedown.
Wonder what the total hit to the S&P 500s balance sheets will be if they have to write Russian assets to $0?
“Fed.gov and the Federal Reserve cutting off Russian Central Bank US$ access is a BIG DEAL. Its never happened to an OECD country before.”
Cutting off Russia from the SWiFT system may make sense in the short term, but I wonder if longer term it might be a disaster like Trudeau seizing bank accounts. That has produced a run on Candian banks that so far has been widely kept out of the news in an effort to limit the damage. But several sources have said huge amounts of cash have been moved from Candian banks to the banks of other countries. This was the reason Trudeau reversed himself so quickly even though he wanted the additional power. Russia telling people they can’t pay them in dollars so they can’t sell their assets makes perfect sense.
I’m wondering if leaving Russia connected to the wider world might have given the US more leverage. The threat of something is often more powerful than the actual doing of something. Once it’s done, okay, now what?
Thats what they get for investing in Russia!!!
“Once it’s done, okay, now what?”
We tell Russia, after you have a new President, you can come back into SWIFT.
Regime Change!
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