Russia central bank says possible new U.S. sanctions pose serious volatility risk

MOSCOW (Reuters) – Russia’s central bank sees risks of higher global market volatility in the short and medium term, one the most serious of which posed by possible new U.S. sanctions against Russia.

Monetary policy tightening by major central banks, primarily by the U.S. Federal Reserve, and trade issues between the United States and China and other countries, could also contribute to volatility, the bank said in a report on financial stability published on Thursday.

An economic slowdown in China also poses a risk, it said.

Russia’s financial market has so far proven resilient to external risks, the central bank said.

Twenty-four of Russia’s largest banks had $43.9 billion worth of foreign currency in cash, securities and on their accounts as of Sept. 1, which was “generally enough” to cover their foreign exchange liabilities.

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