New US sanctions against Russia that forced the country’s main financial marketplace to immediately cease trading in dollars and euros have not caused any panic on the streets, despite fears of a weakening ruble.

On June 12, the United States announced sanctions against the Moscow Exchange, Russia's primary stock market and foreign currency clearinghouse, to hinder Russia's ability to fund its invasion of Ukraine. As a result, banks will no longer be able to trade dollars and euros through a central exchange. Instead, banks must now engage in direct bank-to-bank agreements or trade in less liquid markets, leading to increased volatility and higher transaction costs.

However, on the streets of Moscow, the sanctions have not caused any significant reaction. Initially, many banks raised their exchange rates to as high as 200 rubles per dollar, sparking fears of a new currency crisis on social media. However, rates quickly stabilised. By late June 13, most banks and bureaux de change had spreads of less than ten rubles, similar to those before the new sanctions were imposed.

“To be honest with you, I don’t really care about the exchange rate much nowadays,” Ivan, a 29-year-old software developer, told bne IntelliNews. “Given the difficulty of foreign travel since the start of the war, I don’t travel as much as I used to. That’s the only time I was really affected by the rate, and that is a thing of the past.” For many ordinary Russians, the ruble-dollar exchange rate is regarded as the primary indicator of the economy's health. As a result, any changes affecting their ability to buy and trade dollars have in the past incited panic and fear, often seen as harbingers of economic collapse. However, following two years of stringent sanctions and economic isolation, the response this time has been notably subdued.

“In the 1990s I kept quite a lot of my money in dollars. Times were uncertain and I was scared after the ruble was devalued,” Anton, a 60-year-old retired factory worker, told bne IntelliNews. “But now, all my money is in rubles. Why do I need dollars? I made the mistake of changing a lot of my money in February 2022, when the war started. I thought the ruble would become very very weak. I got a bad rate then. And since that moment I’ve decided not to make any quick decisions with buying dollars or euros. Panic just causes bad decisions.” In contrast to reports seen online, bne IntelliNews reporter in Moscow saw no long lines at any banks in the centre of the city.

“Yesterday, when the new sanctions were imposed, was a national holiday, so the reaction was slower than usual. I think this was the cause of much of the confusion.” one bank employee at a branch near Moscow’s Kursk Train Station told bne IntelliNews on June 13. “This morning when we opened, the spread was unusually large, but this was corrected when the Central Bank set its official rate. I think everything is back to normal now.”