“A full-blown currency and financial-crisis scenario seems to be unfolding in Russia in what was supposed to a quiet week as we head into the holiday season,” Slava Smolyaninov, deputy head of research, wrote in an e-mailed report today. “There is a risk that the economy will come to a sudden stop, along with the banks and the overall financial system. Hence, we may have underestimated the level of financial risk in the event of a full-fledged panic. A bank run could be in the cards.”
Smolyaninov didn’t reply to a call or an e-mail seeking comment. UralSib Capital is a unit of a bank that is the 13th largest consumer lender in Russia, according to its website.Banks in Moscow, including Citigroup Inc. (C), ZAO Raiffeisen and Khanty-Mansiysk Otkritie Bank, yesterday reported a surge in demand for foreign currency as the ruble continued to slide after a plunge in oil prices. The currency has lost almost half its value against the dollar this year, a decline yesterday’s interest-rate increase initially failed to halt.
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