Bank of Russia: Russia’s central bank hikes key rate to 20 percent

Russia’s central financial institution introduced Monday it was elevating its key rate of interest to twenty p.c from 9.5 p.c because the West pummelled the nation with sanctions over Moscow’s invasion of Ukraine.

“The Financial institution of Russia’s board of administrators has determined to boost the important thing price to twenty p.c,” the central financial institution mentioned in a press release.

It mentioned it was taking the emergency measure as a result of the Russian economic system’s scenario had “drastically modified”.

The financial institution mentioned that this may enable it to “assist monetary and worth stability and shield residents’ financial savings from depreciation”.

The Russian ruble has plunged in worth to historic lows after world powers imposed contemporary, harsher sanctions on Moscow over its invasion of Ukraine.

When buying and selling opened on Monday on the Moscow inventory alternate, the ruble was buying and selling at 90 rubles to the greenback and 101.19 to the euro.

The central financial institution on Monday morning additionally introduced a obligatory measure for firms primarily based in Russia that earn overseas foreign money by way of exports to promote foreign money amounting to 80 p.c of their earnings.