Moscow stock exchange halts dollar and euro trading amid new US sanctions

In response to a fresh wave of sanctions from the United States, the Moscow Stock Exchange has ceased all trading activities involving the US dollar and Euro on Wednesday. This move, executed by Russia’s leading financial marketplace, includes the suspension of both share trading and money market transactions in these currencies.

The trading halt follows the US Treasury Department’s recent imposition of financial penalties targeting Russia. The sanctions, affecting more than 300 entities, aim to undermine the country’s financial infrastructure. The Treasury’s recent press release emphasized that these measures are designed to take a “sweeping aim at the foundational financial infrastructure” of Russia.

This development comes after the BRICS alliance’s revelation of significant strides in its mission to overhaul the global financial system. Economic ministers representing BRICS member nations announced that they are entering the final stages of complete de-dollarization on Tuesday, a move aimed at challenging the hegemony of the US dollar in international trade.

The alliance, comprising Brazil, Russia, India, China, and South Africa, has long sought to assert its autonomy from the Western-dominated financial order, advocating for increased utilization of local currencies and the establishment of alternative payment systems.

The BRICS economic alliance, with Russia holding the 2024 chairmanship, has been actively pursuing a de-dollarization strategy. This initiative has been driven by the increased politicization and weaponization of Western currencies. The latest sanctions have reinforced the alliance’s resolve, with Russia promptly halting dollar and Euro trading on its stock exchange as a direct response.

US Treasury Secretary Janet Yellen stated that the sanctions are focused on closing “remaining avenues for international materials and equipment, including their reliance on critical supplies from third countries.” She also indicated that additional sanctions on other nations might be forthcoming.

Reuters reported that Russia’s Central Bank assured the public that all US dollar and Euro funds “remain safe” despite the trading halt. The Central Bank attributed the decision to the “restrictive measures” imposed by the United States.

This development coincides with a significant trade agreement within the BRICS alliance. The member countries have decided to conduct trade using their native currencies, thereby reducing their dependence on the US dollar. This agreement includes all BRICS members and six additional countries, marking a pivotal shift in the global financial landscape.