If you require FX or physical cash as an individual, company, institution or bank and are unable to either:
1: Withdraw 'sizeable' funds quickly
2: Facilitate international bank transfers
3: Hold foreign currency
Then an IOU isnt going to help you and it certainly wont help the economy short/mid/long term as it will continue to sink.
Whenever FX and SWIFT open up again then the domestic currency will be massively devalued and the risk profile would be insane. How have you hedged the risk when you cant use FX?
If im running an investment vehicle would i be willing to do back door business with Russia if i could navigate the sanctions? Perhaps...but am i going to take such an enormous risk to lend currency over a long term period when the local currency is being printed at a very low rate? The timeframe risk is immense...in Russia of all places as well?
That makes no sense to me, how would you even get collateral from Russia or Russian companies?
The only thing i could see an investment vehicle doing is to go in and buy up stock using offshore vehicles at dirt cheap prices just like in the cowboy days in China.
To discount global examples of currency devaluation while providing examples of "The West/GS/Buffet" while stating that Russians are brought up as socialists also is illogical to me...
...it doesnt matter about the circumstances, if you have all these financial sanctions there is NO solution short term.
Crypto could have been the solution but currently theyre not setup for it as they were considering to ban it...now regulated it and build some kind of infrastructure around it.
Even then, what about the funds i cant use sat in my bank?
If the IOU idea happened then its not too dissimilar to when Abramovich used to buy up his colleagues stocks cheaply at payday until he accumulated a large amount of stock...which got him started.
The Oligarchs could simply do the same and the mafia wheel keeps turning.
Im amazed at the viewpoint that this is "small". Cut off the central banks reserves, cut off trade and FX capability and there is no way this is "small".
Yes i was amazed they didnt inflict the SWIFT measures within 24 hours along with the airspace bans, FX sanctions, Duma and Federation members offshore asset freezes and also the blacklisting of all Russian companies and individuals who are non-resident outside of Russia.
The gravity of such sanctions would surely have driven public opinion in Putin down to the abyss.
Also im not sure why theres been no private mercenaries sent over (at least not to my knowledge).