The Russian central bank raised its key interest rate to 20% from 9.5% on Monday in an emergency move, and authorities told export-focused companies to sell foreign currency as the ruble tumbled to record lows, Reuters reports.
“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.”
In another attempt to support the ruble, the central bank and the finance ministry also jointly ordered Russian exporting companies to sell 80% of their foreign currency revenues on the market.
