Russia Raises Key Interest Rate to 20% And Orders Companies to Sell Foreign Currency

The Russian Central Bank on Monday raised its key interest rate to 20 percent from 9.5 percent to counter the risks of a depreciating ruble and rising inflation.

The central bank and finance ministry said Russia had also ordered companies to sell 80 percent of their foreign currency earnings.

The central bank announced a series of measures on Sunday to support domestic markets as it scrambles to manage the fallout from the widening range of tough Western sanctions introduced earlier this week in response to Moscow’s invasion of Ukraine.