Ukraine’s Financial Markets Shiver In Wake Of Russian Attack

February 25, 2022
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Ukraine has announced a number of temporary measures as people are rushing to cash machines to access their savings following Russia’s large-scale invasion of the country.

Ukraine has announced a number of temporary measures as people are rushing to cash machines to access their savings following Russia’s large-scale invasion of the country.

On February 24, Ukraine President Volodymyr Zelenskyy announced the imposition of martial law in the country after Russian military forces crossed its borders attacking Ukrainian military infrastructure in the country.

Less than an hour later, the board of the National Bank of Ukraine approved a resolution on “the operation of the banking system under martial law”.

The measures limit the amount of cash Ukrainians can withdraw within a day to 100,000 hryvnia, roughly £2,510, and imposed a moratorium on cross-border foreign currency payments.

It also prohibits the release of cash from client accounts in foreign currency and freezes official exchange rates as of February 24.

“Banks issuing e-money shall suspend issuance of e-money, replenishing e-wallets with e-money, and e-money distribution,” the document reads.

The resolution states cashless payments, government payments and ATM cash supply should be carried out without any restrictions.

Following Russia’s attack, Ukraine’s PFTS Stock Exchange suspended its operation “due to emergency events” and Europe's stock markets fell nearly 4 percent, according to Reuters.

The newswire also reported that Brent crude oil prices, the global benchmark, surged above $100 per barrel to their highest levels since 2014, and natural gas prices soared 62 percent, according to Bloomberg.

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