The Russian rouble plummeted to a record low against the dollar on Monday amid an accelerating Western-led campaign to punish and isolate Moscow over its invasion of Ukraine. As barrage of sanctions hit the Russian private banks and financial institutions, Ruble fell to 119.50 per dollar in Asian trading, toppling to a record low. Bank of Russia increased the key rate to 20% p.a. "The Bank of Russia Board of Directors decided to increase the key rate to 20% per annum from 28 February 2022. External conditions for the Russian economy have drastically changed," read an official 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 the savings of citizens from depreciation. "The United States, European Union, United Kingdom, Japan, Canada and Australia have announced a raft of sanctions to punish Russia in recent days amid growing international outrage over Russian President Vladimir Putin’s military offensive against Kyiv. The measures include blocking some banks from the SWIFT international payments system, preventing Russia’s central bank from using its foreign reserves, banning broadcasts of Russian state media, and restricting Russian flights from European airspace.