Russia has more than doubled its main interest rate after the rouble fell 30 percent versus the US dollar, BBC reported.
According to the report, the Bank of Russia increased its interest rate to 20 percent from 9.5 percent to help soften the impact of the rouble's decline on pricing. The move occurred after the United States and other Western nations imposed fresh sanctions on Russia in response to its invasion of Ukraine.
The reports adds, the Russian ruble has hit a new low after some of the country's banks were barred from utilizing the Swift international payment system. Fears of a bank run in Russia prompted Russia's central bank to issue a call for calm on Sunday. In addition, rising tensions pushed Brent crude oil beyond USD100 a barrel.
Russia's vital oil and gas exports are heavily reliant on the Swift system."Unless the Russian central bank and Russia's largest banks - which have already been cut off from correspondent banking - find a new way to access the global financial system, Russia risks being isolated from the global economy in the same way that Iran and North Korea have been," said Ari Redbord of blockchain analytics firm TRM Labs.