Russia Banks Raise Key Rates by 20% in Desperate Measure to Save Ruble
www.coindesk.com 28 February 2022 08:10, UTC
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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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Russians Ditch Ruble, Central Bank Scrambles as Fiat ‘Destruction’ Looms
cryptonews.com 28 February 2022 03:53, UTC