Russian Rouble coins are seen in front of displayed descending stock graph in this illustration taken, February 24, 2022. REUTERS/Dado Ruvic/Illustration
The Russian central bank raised its key interest rate to 20 per cent from 9.5 per cent on Monday in an emergency move to shield the economy from rampaging sanctions.
The Country’s apex bank according to Reuters, also told export-focused companies to sell foreign currency as the rouble tumbled to record lows.
“External conditions for the Russian economy have drastically changed,” the central bank said in a statement.
“The increase of the key rate will ensure a rise in deposit rates to levels needed to compensate for the increased depreciation and inflation risks. This is needed to support financial and price stability and protect citizens’ savings from depreciation.”
Central Bank Governor Elvira Nabiullina will hold a briefing at 1300 GMT, the bank said.
In another attempt to support the rouble, the central bank and the finance ministry also jointly ordered Russian exporting companies to sell 80% of their foreign currency revenues on the market.
The recent moves add to a slew of measures announced since Thursday to support domestic markets, as the state scrambles to manage the broadening fallout from Western sanctions imposed in retaliation for Russia’s invasion of Ukraine.
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