Ukraine’s Central Bank Reports ‘Smooth Functioning’

Ukraine’s banking system has managed to stay strong amid Russia’s invasion, the country’s central bank’s governor said Thursday (March 3).

As Reuters reported, Kyrylo Shevchenko said the National Bank of Ukraine has been bolstered by around $15 billion in international financial support.

“The National Bank is doing everything necessary to ensure the continuity of both non-cash and cash payments and the smooth functioning of the banking system of the state under martial law,” Shevchenko said in a briefing.

See also: Ukraine Central Bank Confirms System Still Running Fine

The governor’s comments came as Russian forces laid siege Thursday (March 3) to a number of key cities around Ukraine, part of a week-old invasion that prompted international condemnation.

The U.S. and other countries have responded by waging a financial war against Russia, issuing sweeping sanctions — which, among other factors, caused the country’s currency to collapse — and cutting off major banks from the crucial SWIFT financial messaging network.

Read more: Russia’s Central Bank Plans Daily Auctions as Financial Squeeze Tightens

On Thursday (March 3), Russia’s central bank was due to begin hosting daily 3 trillion rouble ($28.31 billion) repossession and deposit auctions to help the country’s lending institutions “manage their liquidity and keep overnight money-market rates close to its key rate.”

The Bank of Russia says the auctions will be held every weekday. The bank hiked interest rates after the sanctions, which lowered the value of the Russian ruble to less than a penny.

Read more: Russian Companies Scramble to Open Chinese Bank Accounts

Reports emerged Thursday that a number of Russian companies had begun approaching Chinese state banks that do business in Russia seeking to open accounts.

The report, via Bloomberg News, quoted a Chinese businessman operating in Russia who said several Russian companies he works with plan to open yuan accounts.

“It’s pretty simple logic,” he said, asking not to be identified. “If you cannot use U.S. dollars, or euros, and U.S. and Europe stop selling you many products, you have no other options but to turn to China. The trend is inevitable.”