5 ms·

Russia's Money Is Gone?

19 points by bmsleight_ 5y ago

uberman 5y ago
Can someone provide a summary?
- Permit 5y ago
  > As of Friday Russia had about $630 billion of foreign currency reserves, a large cushion designed to allow it to withstand economic sanctions and prop up the value of the ruble. But “foreign currency reserves” are not an objective fact; they are mostly a series of entries on lists maintained by foreign-currency issuers and intermediaries (central banks, correspondent banks, sovereign bond issuers, brokerages). If those people cross you off the list, or put an asterisk next to your entry freezing your funds, then you can’t use those funds anymore. > The bulk of Russia’s foreign reserves are held in the form of securities, deposits at other central banks and deposits at foreign commercial banks. A ban on transactions with Russia’s central bank means that it can’t sell those securities or access those deposits
ddlatham 5y ago
How will this impact Russia's will to continue to supply gas and oil to Europe? Is Europe paying them in euros or some other currency? Where is it "stored"? If Russia's money is frozen, what use is it? Or even if it's not frozen, but they cannot use it to buy goods and services in exchange, then why would they bother selling the oil and gas?
commandlinefan 5y ago
> people basically trust it to be reliable and neutral and rules-based I'm continually shocked at how many people believe that this is actually a bad thing.
- Arnt 5y ago
  You may misunderstand many of them… the key word is "rules-based", which is plural. Is someone who violates one of the key rules still covered by the others? What Russia did was violate the sovereignty of Ukraine, and sovereignty has been a core rule for almost 400 years.
adhesive_wombat 5y ago
Turns out the real Bored Ape Yacht Club was in the central banks all along and it's all non-fungible if you go too far. Doesn't "Gee, Sorry you lost all your money, but you just didn't do your own research and understand the system and technology" sound familiar?
- basicplus2 5y ago
  Bored Ape Yacht Club (BAYC), or simply Bored Ape, is a non-fungible token (NFT) collection on the Ethereum blockchain https://en.m.wikipedia.org/wiki/Bored_Ape https://en.m.wikipedia.org/wiki/Bored_Ape

19 points by bmsleight_ 5y ago

uberman 5y ago

Can someone provide a summary?

Permit 5y ago
> As of Friday Russia had about $630 billion of foreign currency reserves, a large cushion designed to allow it to withstand economic sanctions and prop up the value of the ruble. But “foreign currency reserves” are not an objective fact; they are mostly a series of entries on lists maintained by foreign-currency issuers and intermediaries (central banks, correspondent banks, sovereign bond issuers, brokerages). If those people cross you off the list, or put an asterisk next to your entry freezing your funds, then you can’t use those funds anymore. > The bulk of Russia’s foreign reserves are held in the form of securities, deposits at other central banks and deposits at foreign commercial banks. A ban on transactions with Russia’s central bank means that it can’t sell those securities or access those deposits

ddlatham 5y ago

How will this impact Russia's will to continue to supply gas and oil to Europe? Is Europe paying them in euros or some other currency? Where is it "stored"? If Russia's money is frozen, what use is it? Or even if it's not frozen, but they cannot use it to buy goods and services in exchange, then why would they bother selling the oil and gas?

commandlinefan 5y ago

> people basically trust it to be reliable and neutral and rules-based I'm continually shocked at how many people believe that this is actually a bad thing.

Arnt 5y ago
You may misunderstand many of them… the key word is "rules-based", which is plural. Is someone who violates one of the key rules still covered by the others? What Russia did was violate the sovereignty of Ukraine, and sovereignty has been a core rule for almost 400 years.

adhesive_wombat 5y ago

Turns out the real Bored Ape Yacht Club was in the central banks all along and it's all non-fungible if you go too far. Doesn't "Gee, Sorry you lost all your money, but you just didn't do your own research and understand the system and technology" sound familiar?

basicplus2 5y ago
Bored Ape Yacht Club (BAYC), or simply Bored Ape, is a non-fungible token (NFT) collection on the Ethereum blockchain https://en.m.wikipedia.org/wiki/Bored_Ape https://en.m.wikipedia.org/wiki/Bored_Ape