Part D: Russia-Ukraine War (24 marks) 1) The Russian ruble (P or RUB) was trading around RUB80/USD before the Moscow sent troops into Ukraine on February 24, 2022. In the following days, the Ruble lost 40 percent of its value, slumping to an unprecedented level of RUB150/USD. The European Commission, along with the United States, United Kingdom and Canada pledged to remove Russia from the Society for Worldwide Interbank Financial Telecommunication (SWIFT), a global messaging service that connects financial systems at global level (which is used to transfer money involving trillions of dollars between companies and governments across borders). The removal of a few Russian banks from SWIFT system by ...is considered a "nuclear move" to Russia (CNN Business, Feb 29, 22)... as more than 1 percent of those messages are involving Russian payments (BBC News, Feb 27, 2022). SWIFT was created in 1973 and links 11,000 banks and institutions in more than 200 countries. Furthermore, Russia is suspended from the Bank for International Settlements, knowns as the central bank for central banks, preventing Russia's central bank from assessing banking services at the Basel, Switzerland-based institution (The Wall Street Journal, Mar 11, 2022). Critically discuss the performance of Russia's Ruble against the home currency of your chosen firm since the start of the Ukraine war. Selected Headlines from the News: Bloomberg Businessweek (March 3, 2022) ...the World Turned Finance Into a Weapon of War Forbes (March 5, 2022) The First Financial War CNBC Breaking News (March 9, 2022) "Sanctions are making Russian assets 'uninvestable', says Goldman Sachs. CNBC (March 9, 2022) The Russia-Ukraine war has hit many currencies hard... Evaluate the key financial sanctions imposed on Russia and their implications on Russia's international financial system, geopolitical risk and international business environment. (18 marks) 2) Assume your chosen firm have international trading activities with firms operating from countries listed below in Group A and Group B. Briefly discuss how your firm's financial performance will be affected by the geopolitical risk arises from the Russia-Ukraine war, assuming you have existing trading with a counterparty in each group respectively. (6 marks) Group A: (choose one only) Group B: (choose one only) Russia Germany Poland United States Ukraine China Part D: Russia-Ukraine War (24 marks) 1) The Russian ruble (P or RUB) was trading around RUB80/USD before the Moscow sent troops into Ukraine on February 24, 2022. In the following days, the Ruble lost 40 percent of its value, slumping to an unprecedented level of RUB150/USD. The European Commission, along with the United States, United Kingdom and Canada pledged to remove Russia from the Society for Worldwide Interbank Financial Telecommunication (SWIFT), a global messaging service that connects financial systems at global level (which is used to transfer money involving trillions of dollars between companies and governments across borders). The removal of a few Russian banks from SWIFT system by ...is considered a "nuclear move" to Russia (CNN Business, Feb 29, 22)... as more than 1 percent of those messages are involving Russian payments (BBC News, Feb 27, 2022). SWIFT was created in 1973 and links 11,000 banks and institutions in more than 200 countries. Furthermore, Russia is suspended from the Bank for International Settlements, knowns as the central bank for central banks, preventing Russia's central bank from assessing banking services at the Basel, Switzerland-based institution (The Wall Street Journal, Mar 11, 2022). Critically discuss the performance of Russia's Ruble against the home currency of your chosen firm since the start of the Ukraine war. Selected Headlines from the News: Bloomberg Businessweek (March 3, 2022) ...the World Turned Finance Into a Weapon of War Forbes (March 5, 2022) The First Financial War CNBC Breaking News (March 9, 2022) "Sanctions are making Russian assets 'uninvestable', says Goldman Sachs. CNBC (March 9, 2022) The Russia-Ukraine war has hit many currencies hard... Evaluate the key financial sanctions imposed on Russia and their implications on Russia's international financial system, geopolitical risk and international business environment. (18 marks) 2) Assume your chosen firm have international trading activities with firms operating from countries listed below in Group A and Group B. Briefly discuss how your firm's financial performance will be affected by the geopolitical risk arises from the Russia-Ukraine war, assuming you have existing trading with a counterparty in each group respectively. (6 marks) Group A: (choose one only) Group B: (choose one only) Russia Germany Poland United States Ukraine China
