“Russia central bank more than doubles key interest rate to 20% to boost sinking ruble”
February 28, 2022
“Russia’s central bank on Monday more than doubled the country’s key interest rate from 9.5% to 20% as its currency, the ruble, hit a record low against the dollar on the back of a slew of new sanctions and penalties imposed on Russia by Europe and the U.S. for its invasion of Ukraine.
The rate hike, the central bank said, “is designed to offset increased risk of ruble depreciation and inflation.”
This follows the central bank’s order to halt foreigners’ bids to sell Russian securities in an effort to contain the market fallout. The ruble fell as far as 119.50 per dollar, down a whopping 30% from Friday’s close. It later pared some of its losses, trading at 93.04 per dollar by 3:30 p.m. in Moscow, still down roughly 20% against the dollar in the last year…”