Banking Crisis

Saxo Bank Closes Rouble Forex Pair Trading

Editorial Staff 2 March 2022

Saxo Bank Closes Rouble Forex Pair Trading

The rouble has collapsed in value against major currencies after the European Union, the UK, the US and other powers cut Russia from the SWIFT banking system, imposed sanctions and other measures because of Vladimir Putin's decision to invade Ukraine.

Copenhagen-based Saxo Bank, which provides trading platforms for investors and fintech services, said that it closed rouble pair foreign exchange trades because of the Russia/Ukraine crisis. 

Rouble pair trades have become highly volatile since Russia invaded Ukraine, prompting sanctions and other clampdowns on Russian trade and financial flows. Rouble pairs are threatened by low liquidity and the danger that dealing will be interrupted by restrictions and government sanctions.

The Russian currency slumped by about 30 per cent against the US dollar on Monday, and fell heavily against other currencies such as the euro and sterling, after the US, the European Union and the UK announced measures to block some Russian banks from the SWIFT international payment system and to restrict Russia's use of its massive foreign currency reserves. The system is used to move billions of dollars around more than 11,000 banks and other financial institutions around the world. 

Currency drama


Saxo Bank said in a letter to clients yesterday that all trading in all RUB currency pairs was to be discontinued yesterday at 14:50 GMT. 

“Any open RUB currency pair positions at 14:50 GMT will be closed automatically,” Saxo Bank said in a note. 

All incoming RUB cash payments are suspended until further notice, it added.

Separately, Saxo Bank has reported a net profit of DKK755 million ($113.44 million) for 2021 compared with DKK750 million for 2020. Total revenues rose to DKK4.527 billion in 2021 compared with DKK4.324 billion in 2020. It brought in a record high number of 263,000 new clients. It has a total of 820,000 clients, together holding DKK640 billion of assets by the end of 2021.

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