EU sanctions against the Russian financial system came into force on Monday night.
(Photo: Bloomberg)
Dusseldorf The Russian central bank has reacted to the West’s financial sanctions in the wake of the Ukraine war with drastic measures: Among other things, it has doubled the key interest rate and limited trading in the Russian currency, the ruble, and securities.
The currency watchdogs increased the key interest rate from 9.5 to 20 percent, as they announced in Moscow on Monday. At the same time, they signaled their readiness for further increases. The Belarusian central bank also raised the key interest rate from 9.25 to 12.0 percent.
The higher interest rates are intended to counteract the risk of the devaluation of the ruble and the risk of inflation. The head of the Russian central bank, Elvira Nabiullina, wants to explain the measures at a press conference later in the day.
Local companies should also sell 80 percent of their foreign exchange earnings, announced the central bank and the Ministry of Finance. The measure should also aim to limit a fall in the ruble.
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