Russian Central Bank Raises Key Rate to 20% after Rouble Plunged Record Low

Central Bank of Russia raised its key interest rate to 20% from 9.5% on Monday in an emergency move and author authorities told export-focused companies to sell foreign currency as the rouble tumbled to record lows.

“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 move the central bank and the finance ministry collarborately asked Russian exporting companies to sell 80% of their foreign currency revenues on the market.