Russia’s Central Bank Plans Daily Auctions as Financial Squeeze Tightens

The Russian central bank said Wednesday (March 2) that it will host daily 3 trillion rouble ($28.31 billion) repossession and deposit auctions to help lending institutions across the country “manage their liquidity and keep overnight money-market rates close to its key rate,” according to a Reuters report.

The auctions are scheduled to start Thursday (March 3) and will be held every weekday, according to a central bank statement, per the news outlet.

Related: Ukraine Central Bank Confirms System Still Running Fine

Meanwhile, the country Russia attacked says its banking system has been running smoothly and banks across Ukraine have been replenishing cash as often as possible, according to central bank governor Kyrylo Shevchenko.

Online banking operations are running fine across the country and non-cash transfers, including to the national army, are still working properly, he said in the Reuters report Tuesday (March 1).

In response to the Russian attack against Ukraine, the U.K. plans to pass legislation designed to curb laundering of “dirty money” that has been used to support the war.

U.K. Foreign Secretary Liz Truss has said the U.K. was standing with Ukraine and its democracy, writing there will be “nowhere left to hide” for the wealthy people who are connected to Russian president Vladimir Putin and his regime.

The measure was originally introduced in 2018 to stop the estimated 100 billion pounds ($133.3 billion) in illegal financing that the U.K. Crime Agency said has been moving through the country every year.

Also read: Visa and Mastercard Ban Russian Banks, Pledge $2M Each in Aid

In separate moves aimed to cripple the Russian economy during its unprovoked attack on Ukraine, Visa and Mastercard announced that they are both blocking numerous Russian financial institutions from their global card payment networks, in support of and compliance with sanctions imposed by West nations.

Mastercard and Visa also both pledged a donation of $2 million apiece for humanitarian aid. Mastercard’s donation will be distributed among the Red Cross, Save the Children and the company’s employee assistance fund for humanitarian relief.

Visa’s contribution will benefit the U.S. Fund for UNICEF to support the humanitarian efforts in Ukraine. The company also plans to double-match all employee donations up to $1 million to the Ukraine response funds of UNICEF and the Red Cross.