Russia’s central bank hikes interest rates

Moscow, Feb 28 (FN Agency) Russia’s central bank hiked its key interest rate to 20 per cent from 9.5 per cent, to counter the risks of rouble depreciation and higher inflation. “External conditions for the Russian economy have drastically changed,” the central bank said in a statement. Moscow has also ordered companies to sell 80 per cent of their foreign currency revenues,the statement added.

The Rouble dropped nearly 30 per cent to as low as 119 per dollar as markets opened for trading on the first day after western nations announced economic sanctions on Russia for its invasion of Ukraine. The sanctions include blocking some Russian banks from the Swift international payments system, leading investors to anticipate a run on the Russian currency as people try to change their money for dollars and other denominations.