Russian Banks Raise Key Rates to 20% in Desperate Measure to Save Ruble

The country faces sanctions from the West as the war against Ukraine continues.

AccessTimeIconFeb 28, 2022 at 8:01 a.m. UTC
Updated May 11, 2023 at 4:42 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Russian banks have raised key rates to 20% in a bid to save the ruble as major countries cut off support to Moscow amid its invasion of Ukraine.

  • The Russian central bank raised its key interest rate to 20% from 9.5% on Monday in an emergency move. Authorities told export-focused companies to sell foreign currency as the ruble tumbled to record lows.
  • The ruble opened 40% lower against U.S. dollars on Monday. Russia's state-owned Sberbank is "failing or likely to fail," the European Central Bank said in a prepared statement.
  • Russia has also ordered companies to sell 80% of their foreign currencies, the central bank and the finance ministry said.
  • The key rate is the interest rate at which banks can borrow when they fall short of their required reserves.
  • Russia’s invasion of Ukraine has resulted in tensions in Eastern Europe. Global markets slipped last week, and bitcoin plunged as much as 10% in a single day before a slight recovery over the week as the U.S. announced sanctions.
  • Meanwhile, Ukraine has raised over $10 million in cryptocurrency donations on an official address to help citizens caught in the crossfire.

UPDATE (Feb. 28, 12:27 UTC): Corrects headline to say "Russian Banks fixes key rates to 20%."

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Shaurya Malwa

Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.