Russia’s central bank has raised interest rates to 20 percent from 9.5 percent to offset the ruble’s devaluation and rising inflation.
“External conditions for the Russian economy have changed dramatically,” the central bank said in a statement, adding that raising the key interest rate would ensure an increase in the deposit rate to the levels needed to offset rising risks of devaluation and inflation.
This decision was necessary to strengthen the economy and price stability and to protect citizens’ savings.
The ruble is collapsing
Up to 40% of its exchange rate against the US dollar is now losing the Russian ruble, setting a record after even tougher Western sanctions were imposed on Moscow because of the invasion of Ukraine.
The ruble fell as much as 40% to 118.63: 1 against the US dollar, in the first transactions in the international financial markets.
5% increase in oil – At $ 103 a barrel
The price of its barrel crude oil West Texas Intermediate (WTI) notes leaps and boundswhere exceeded 6%in trade in Asia so far, as markets seem to be increasingly concerned about the possibility of an energy crisis following new Western sanctions imposed on Russia over its invasion of Ukraine.
The price of the barrel increased by 6.27%, to 97.33 dollars, around 06:45 (Greek time), while that of the barrel Brent rose 5.24%στα $ 103.06.
EU sanctions against Russia’s central bank in force
The European Union sanctions against it Central Bank of Russia entered into force after being published in the Official Journal of the EU in the early hours of today.
They include a ban on any European transactions with the central financial institution of the Russian Federation, according to European Commission President Ursula von der Leyen.
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