While the West continued to pound Russia with sanctions for its invasion of Ukraine, Russia’s central bank said Monday that it was raising its key interest rate to 20% from 9.5 percent.
According to a statement from the central bank, the Bank of Russia’s board of directors agreed to increase the key rate by 20%.
It stated the emergency measures were essential because the Russian economy had “dramatically transformed.”
This, the bank asserts, will enable it to “keep financial and price stability while also safeguarding people’s assets.”
This is because Western countries have imposed new, stronger sanctions on Russia in response to Moscow’s invasion of Ukraine. The value of the Russian ruble has fallen to a record low.
When the Moscow stock market opened for trade on Monday, the ruble was trading at 90 rubles to the dollar and 101.19 to the euro.
Additionally, the central bank said Monday morning that Russian-domiciled businesses that earn foreign currency via exports must sell at least 80% of their revenue in foreign currency.
AFP
