Bonds instead of money – a new challenge for exit

The Bank of Russia will consider a proposal by deputies to pay off exiting foreign companies with special Central Bank bonds tied to frozen reserves instead of currency.

According to the initiative, the special bonds should be issued in the amount of Russian assets frozen in the West (approximately $300 billion). This measure should stabilize the exchange rate and help to protect frozen assets; however, on the other hand, it would mean the disclosure of information about Russian reserves, as well as the structure of the Central Bank's assets abroad, which is undesirable, according to the Head of the Bank of Russia Mrs. Nabiullina [1]. First of all, such option is considered as an alternative to type "C" accounts.