Ukraine Urges Major Central Banks to Ban Payments in Rubles

Economy Politics

London, April 1 (Jiji Press)--The National Bank of Ukraine on Friday requested the Bank of Japan, the U.S. Federal Reserve and other major central banks to completely ban payments in Russian and Belarusian rubles.

The request came after Russia threatened to cut off natural gas supplies to Western countries that refuse to pay for Russian gas in rubles. The development suggests that Russia and the West are in an increasingly sharp conflict over currencies as well.

The NBU asked the major central banks, also including the European Central Bank and the Bank of England, to impose a sweeping ban that will forbid financial institutions based in their countries and regions to process payments in rubles.

In addition, the Ukrainian central bank requested a ban on the opening of ruble-denominated accounts and exchanges of rubles for other currencies.

Russia is "making every effort to convert its trade in energy and other natural resources into rubles, trying to generate additional demand for its domestic currency and thus shore it up," NBU Governor Kyrylo Shevchenko said in a statement. "A ban on making settlements in rubles would derail Russia's plan."

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