As the West slammed Russia with sanctions over its invasion of Ukraine, Russia’s central bank announced Monday that it was hiking its main interest rate to 20% from 9.5 percent.
The Bank of Russia’s board of directors has voted to raise the key rate to 20%, according to a statement from the central bank.
It claimed the emergency action was necessary since the Russian economy’s circumstances had “dramatically changed.”
This, according to the bank, will allow it to “maintain financial and price stability while also protecting citizens’ investments from depreciation.”
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The value of the Russian ruble has plummeted to historic lows as a result of new, tougher sanctions imposed by foreign powers in response to Moscow’s invasion of Ukraine.
The ruble was trading at 90 rubles to the dollar and 101.19 to the euro when the Moscow stock market commenced trading on Monday.
The central bank also declared on Monday morning that enterprises domiciled in Russia that earn foreign currency through exports must sell 80 percent of their earnings in foreign currency.