The Moscow Stock Exchange will reduce the use of the dollar as collateral

A sign with the logo is displayed outside the office of the Moscow Stock Exchange in the capital Moscow, Russia March 24, 2022. REUTERS/Maxim Shemetov

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  • This content was produced in Russia where the law limits coverage of Russian military operations in Ukraine

MOSCOW, Aug 8 (Reuters) – The Moscow Stock Exchange (MOEX.MM) will reduce the maximum amount of dollars it will accept as collateral to secure transactions, it said on Monday, as Russia seeks to reduce its dependence on the currencies of the countries that imposed sanctions on it.

Russian authorities have expressed concerns about individual and corporate holdings of dollars and other currencies that they call “unfriendly”, calling for their conversion into alternatives. Read more

The Moscow Stock Exchange – the country’s largest stock exchange – has announced that it will halve the proportion of dollars in collateral its platform users provide to transact to 25% from 50% from August 15.

De-dollarization in Russia has accelerated since Western countries imposed unprecedented sanctions after Russia sent tens of thousands of troops to Ukraine on February 24. Sanctions have hampered Moscow’s access to global economic and trading systems.

The central bank said on Monday that it planned to differentiate the cost of foreign currency loans for legal entities and their investments in debt securities depending on whether they were denominated in the currencies of friendly or hostile countries.

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