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Russia Banks Raise Key Rates by 20% in Desperate Measure to Save Ruble


www.coindesk.com 28 February 2022 08:10, UTC
Reading time: ~2 m

Russian banks have raised key rates to 20% in a bid to save the ruble as major countries cut off support to Moscow amid its invasion of Ukraine.

  • The Russian central bank raised its key interest rate to 20% from 9.5% on Monday in an emergency move. Authorities told export-focused companies to sell foreign currency as the ruble tumbled to record lows.
  • The ruble opened 40% lower against U.S. dollars on Monday. Russia's state-owned Sberbank is "failing or likely to fail," the European Central Bank said in a prepared statement.
  • Russia has also ordered companies to sell 80% of their foreign currency revenues, the central bank and the finance ministry said.
  • The key rate is the interest rate at which banks can borrow when they fall short of their required reserves.
  • Russia’s invasion of Ukraine has resulted in tensions in the Eastern European region. Global markets slipped last week and bitcoin plunged as much as 10% in a single day before a slight recovery over the week as the U.S. announced sanctions.
  • Meanwhile, Ukraine has raised over $10 million in cryptocurrency donations on an official address to help citizens caught in the crossfire.

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