Russia hikes key rate to 20% amid sanctions from other countries

2 min read | March 01, 2022 12:03 AM AEDT | By Priya Bhandari

Google News:

Russia hikes key rate to 20% amid sanctions from other countries — Image source: Shutterstock.com

Recent News

ChartWatch Highlights: ASX Tech, Resources and ETF Trends Capture Mark...

Is It Finally Time to Revisit ASX Tech Stocks as Base Metals Surge and...

Why News Corp’s Massive Buyback Is Turning Heads Across Global Markets

Viva Leisure’s Buy-Back Moves Forward as Share Reduction Continues

Make Kalkine Media
My Trusted Source

Highlights

Russia’s central bank sharply raised its key interest rate to 20% from 9.5%.

The UK government has joined the US and EU to announce further sanctions against Russia.

Russian companies listed on the LSE have dipped in value, including Sberbankand Gazprom.

The UK government has joined the US and EU to announce further sanctions against Russia. It has restricted individuals and businesses from making any transactions with the Russian central bank, the Ministry of Finance of the Russian Federation, and the Russian wealth fund.

The Russian rouble tumbled by almost 20% lower at 99.5 per dollar

Further, Russian companies are prevented from issuing money market instruments and transferable securities in the UK and prevented designated banks from accessing sterling and clearing payments through the UK to restrict them to process any payments through UK or have access to UK financial markets. On Saturday, the UK, US, and EU announced their plans to ban Russia from the Swift payment system.

In response to tougher Western sanctions, Russia’s central bank raised its key interest rate to 20% from 9.5% in a bid to address risks of rouble depreciation and increasing inflation. It also asked companies to sell 80% of their foreign currency revenues. The Russian rouble tumbled by almost 20% lower at 99.5 per dollar in Moscow, after crashing 28% to 106.44 earlier after sanctions. However, in Asian trading, it tumbled to a new record low of 199.50 per dollar.

For now, trading in Russian Stock Markets has been suspended, and Russian companies listed on the London Stock Exchange dipped to new lows, with Sberbank plunging than 70% and Gazprom falling 44%. The FTSE100 opened trading 1% lower after the Boris Johnson government said it is going to impose tough sanctions on Russia for attacking Ukraine. The German stock exchange operator, Deutsche Börse suspended trading of various Russian companies, including the country’s two financial majors, Sberbank and VTB Bank.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.