LONDON – Havoc erupted on Russian financial markets on Monday after Western powers ramped up sanctions on the country, including cutting some of its banks off from the SWIFT international payments system and slapping curbs on its central bank.
Below are four charts showing the magnitude of today’s market moves and the response from Russia’s central bank.
ROUBLE ROUT
The rouble tumbled more than 30% in early trading, hitting 110 per dollar in both onshore and offshore trading before clawing back some losses. It was worth about 75 to the dollar at the end of 2021.
A related graphic: Russia rouble rout: https://fingfx.thomsonreuters.com/gfx/mkt/byvrjekoave/russianroublerevised.JPG
STOCKS SINK
Trading in equities on the Moscow stock exchange was suspended on Monday but depository receipts and exchange-traded funds listed in London and Frankfurt did open for trading, apart from Russian bank VTB whose membership of the London Stock Exchange was suspended on Friday.
The London-listed iShares MSCI Russia ETF slumped 48%, for a year-to-date loss of 70%. Sberbank’s depositary receipts in London dropped more than 70% on the day and were down 93% year-to-date.
A related graphi: Russian ETF: https://fingfx.thomsonreuters.com/gfx/mkt/zdpxokrlqvx/russianETF.JPG
RATES RISE
The central bank more than doubled its key interest rate to 20% – its highest in more than two decades – in an emergency move. Authorities told export-focused companies to be ready to sell foreign currency as the rouble tumbled to record lows.
A related graphic: Russia interest rates: https://fingfx.thomsonreuters.com/gfx/mkt/zdpxoknonvx/Russia%20interest%20rates.PNG
BONDS BURN
Russia’s sovereign hard currency bonds have suffered a dramatic drop over the past few days, though losses sharply accelerated on Monday after harsh sanctions were imposed. Many of the country’s dollar bonds lost more than 40 cents in the dollar on the day, with longer-dated issues trading at deeply distressed levels of 26-33 cents, Tradeweb data showed.
A related graphic: Russia dollar bonds drop: https://tmsnrt.rs/3tjen6a
(Reporting by Karin Strohecker, additional reporting by Saikat Chatterjee; Editing by Hugh Lawson)
