Some analysts said the ruble could continue to wag its tail in the face of more Western sanctions.
Moscow:
People queued through Moscow shopping malls on Tuesday as the scramble for hard currency continued, and Russians face growing isolation as restrictions made travel difficult and sports teams locked out of major competitions.
Western sanctions over Russia’s invasion of Ukraine have threatened to destroy the economy, and sent the ruble this week to a record low even before a partial recovery.
Dressed in a light blue winter coat, Olga has spent the past two days looking for an ATM where she might be able to withdraw some of her savings in foreign currency.
Some Moscow residents waited for hours, only to find that the automated tellers were empty or had just taken the ruble.
One of the queues, reminiscent of Soviet times, when people queued for hours to buy staple foods, stretched around the corner from the Tsvetnoye shopping mall.
“I haven’t withdrawn any euros yet,” said Olga, waiting in line to use the ATM. “I’m worried. I need to get cash somehow.”
The Russian currency hit a low of 109.1850 against the dollar on the Moscow Exchange on Monday, days after Russia launched a “special operation” in Ukraine.
Some analysts said the ruble could continue to wag its tail in the wake of more Western sanctions designed to exclude Russia, increasing the risk of default on its foreign debt.
The central bank and the finance ministry did not respond to a request by Reuters for comment on the possibility of the default.
Since President Vladimir Putin launched a military campaign against Moscow on Thursday, Russians like Olga have begun to prepare themselves for worsening living standards.
Already hit by high inflation, he fears prices will rise further and has already seen interest rates more than double as the central bank tries to shore up the local currency.
‘I don’t like it’
Russia has closed its airspace to airlines from the European Union and other countries in response to sanctions, raising ticket prices and severely limiting the population’s ability to travel.
The Russians also won’t see their national football team attempting to qualify for this year’s World Cup or the world-renowned figure skaters, many of whom took to the podium at the Beijing Games last month, who compete in international events. .
Purchasing power continues to dwindle and with few opportunities to leave, many Russians choose to spend their rubles on electronic devices such as smartphones and laptops before they become scarce, or simply ineffective.
The Czech Index, which analyzes consumer trends in Russia based on transaction receipts, said spending on electronics and appliances – often foreign-made – had risen 80% from February 21-27 compared to the previous week.
Electronics retailer M.Video-Eldorado confirmed that it has seen an increase in demand for its products, which is partly attributed to the volatility of the ruble.
Customers of three of Russia’s 10 largest banks – VTB, private lender Sovcombank and central bank-owned Otkrity – can no longer pay with ApplePay and GooglePay services.
This has caused problems for metro users in Moscow, forcing commuters to buy one of the transport system’s Troika cards, use a plastic card, or sign up for the city’s facial recognition Face Pay system. Is.
“Everything is clearly bad,” said Anna, another Muscovite. “Everyone’s going to be sad. Prices are going up. I don’t like it.”
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)