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HomeNewsBusinessTreasury prohibits transfers of cash to Russia from US accounts

Treasury prohibits transfers of cash to Russia from US accounts

The Treasury Department is working to limit one of the strategies President Vladimir Putin is using to avoid a default and prevent the Russian government from using US dollars to service US bank debt. Russia faces multiple debt service deadlines in April. The Kremlin must now decide whether to use up its remaining precious dollar reserves, use the new revenue or default, the official said, speaking on condition of anonymity. earlier said that the sanctions imposed on Russia for its aggression against Ukraine allowed Russia to continue to pay its debts. , stems from government investments that are believed to boost Russia’s economic growth.

It cut off a major Russian bank from a financial messaging system called SWIFT that is used daily to route billions of dollars to and from institutions. Sanctions were imposed on Russian leaders, oligarchs, trade and natural resources, and the country’s central bank. The US, EU and UK have restricted the Bank of Russia’s ability to withdraw more than $600 billion in foreign exchange reserves and have frozen gold reserves. This left central banks with few tools to support the ruble and prevent it from depreciating.

Russia is currently facing rapid inflation, shortages of essential goods and trade disruptions with the world continuing to invade Ukraine. The ruble has recovered from the plunge the US and its European allies have put in to bury the Russian economy, but President Putin has eased Western sanctions and resorted to extreme fiscal measures to inflate the ruble. Western sanctions triggered by the war imposed severe restrictions on banks’ financial dealings with Russia and also froze much of the government’s foreign exchange reserves.

Treasury officials say the decision to limit bond payments will further deplete the resources Putin is dedicating to pursuing a war with Ukraine and impose further uncertainties and challenges on Russia’s financial system. Darshak Dholakia, an attorney for trade and government regulation in Washington, said the Treasury Department’s restrictions on access to these funds “seem to have changed the math” and that the United States has warned that Russia will He said he was finding ways to spend less money to buy weapons.

By restricting access to funds to pay bond obligations. “The US has not yet imposed a full lockdown on central banks,” he said. “They say Russia cannot touch these funds unless it is for an authorized purpose. Russian government.

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  • Treasury prohibits transfers of cash to Russia from US accounts
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