Russia's central bank hikes interest rate as rouble plunges
A general view of a Russian Rouble coin on display board. Russia's Central Bank says it is barring traders from selling Russian securities held by foreigners as the domestic financial system faces tightened sanctions. picture alliance / dpa
A general view of a Russian Rouble coin on display board. Russia's Central Bank says it is barring traders from selling Russian securities held by foreigners as the domestic financial system faces tightened sanctions. picture alliance / dpa

The Bank of Russia has decided to increase its key interest rate by 10.5 percentage points to 20% starting Monday, as the central bank responded to Western sanctions amid the Ukraine conflict.

A statement said that the move was designed to shield financial stability and protect the savings of citizens from depreciation.

In the morning, the rouble lost about 8% of its value against the dollar. As a result, one dollar cost more than ever at around 90 roubles.

The national currency plunged in foreign markets even further.