# Russia bans foreign currency transactions

**URL:** <https://discussion.fool.com/t/russia-bans-foreign-currency-transactions/106179>\
**Category:** Macro Economic Trends and Risks\
**Created:** [June 15, 2024, 7:24am UTC](https://discussion.fool.com/t/russia-bans-foreign-currency-transactions/106179 "2024-06-15T07:24:17Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![Divitias](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/divitias/32/9302_2.png) [@Divitias](https://discussion.fool.com/u/Divitias)\
**Post date:** [June 15, 2024, 7:24am UTC](https://discussion.fool.com/t/russia-bans-foreign-currency-transactions/106179/1 "2024-06-15T07:24:17Z")

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A somewhat strange move:

> **[Moscow Exchange Halts Dollar, Euro Trade After New U.S. Sanctions - The...](https://www.themoscowtimes.com/2024/06/13/moscow-exchange-halts-dollar-euro-trade-after-new-us-sanctions-a85391)**
>
> Updated to add the Central Bank's suspension of morning trading.

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<div class="post-metadata">

**Author:** ![Divitias](https://sea2.discourse-cdn.com/motleyfoolfree/user_avatar/discussion.fool.com/divitias/32/9302_2.png) [@Divitias](https://discussion.fool.com/u/Divitias)\
**Post date:** [June 18, 2024, 2:33pm UTC](https://discussion.fool.com/t/russia-bans-foreign-currency-transactions/106179/2 "2024-06-18T14:33:41Z")

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This seems to be the reason for the change – it was forced on them by further US sanctions and threats to banks by Yellen

> “Russia’s war economy is deeply isolated from the international financial system, leaving the Kremlin’s military desperate for access to the outside world,” said Secretary of the Treasury Janet L. Yellen…
> 
> …This means that foreign financial institutions risk being sanctioned for conducting or facilitating significant transactions, or providing any service, involving any person blocked pursuant to E.O. 14024, including designated Russian banks

> **[As Russia Completes Transition to a Full War Economy, Treasury Takes Sweeping...](https://home.treasury.gov/news/press-releases/jy2404)**
>
> Over 300 new sanctions issued across Treasury and StateForeign financial institutions that support Russia’s war economy face greater risk of sanctionsWASHINGTON — As President Biden and Group of Seven (G7) Leaders prepare to meet this week in Italy,...

And the outcome is a new currency deal with China that will make Russia a puppet state if they are not careful:

> Moscow adopted the yuan-to-ruble exchange rate as benchmark after the US expanded sanctions against it.

> **[Russia adopts Chinese yuan-to-ruble as benchmark exchange rate after US...](https://www.businessinsider.com/dedollarization-russia-china-yuan-ruble-exchange-rate-benchmark-new-sanctions-2024-6)**
>
> Russia's central bank said on Thursday that the currencies from "friendly countries" and the ruble now account for as much as 80% of Russia's foreign trade payments.