Russia's central bank announces a host of measures to protect economy and support local currency
As the Russian currency -- ruble -- tumbled prompting worried citizens to queue up at ATMs to withdraw cash, Bank of Russia, the country’s central bank, has sprung into action amid concerns over a liquidity crunch. The value of the ruble is now less than 1 US cent. The Russian currency on Tuesday was pegged at over 105 to a dollar, up from about 75 just a month ago after companies and even households came under severe pressure with the US and EU thrashing out sanctions against Russia and barring many Russian banks from accessing the SWIFT payment system. The central bank, which acknowledged that the country’s economic dynamics have “altered dramatically,” increased the key policy rates to 20 per cent– more than double -- from 9.5 per cent in a desperate attempt to maintain financial and price stability. In a bid to support the local currency and protect it from further depreciation, foreigners have been banned from selling Russian securities. Read more