Economy

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+1.72%

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-1.69%

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Russia is braced for a collapse in the rouble after Western governments cut much of the country's financial system off from the global Swift payments network and pledged to freeze central bank assets in the most punishing sanctions to date.



On Sunday morning Russia’s central bank attempted to reassure the country’s financial system, saying it “has the necessary resources and tools to maintain financial stability”.



The sanctions include restricting the Russian central bank’s foreign-held reserves so that they cannot be used to prop up the country’s economy, and blocking several unnamed banks from using Swift, which lets banks communicate about international payments.

The former will make it harder for Russia’s central bank to prop up the rouble by liquidating assets to buy currency.

The Bank of Russia intervened in the currency markets last week, following Ukraine’s invasion, for the first time since 2014. Russia has $600bn (£450bn) in foreign exchange reserves and gold.