The big takeaway here is that the Russian economy is resorting to gimmicks and sleight of hand using banks to prop up the government in the middle of 21% interest. If the West keeps supporting Ukraine, the Russian house of cards should fall.
Reposted from
Oliver Alexander
Last week the Russian Central Bank sold 1 trillion in bonds to the banks in order to raise money to cover the 2024 government deficit.
The banks lacked liquidity to buy, so now the CB is lending the banks money to buy its own bonds.
All while using the same bonds as collateral for the loan.
The banks lacked liquidity to buy, so now the CB is lending the banks money to buy its own bonds.
All while using the same bonds as collateral for the loan.
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