Russian Central Bank Hikes Interest Rate To 20% As Ruble Sinks To Record Low

The ruble sank to an all time low of 118 against the U.S. dollar in offshore trading after the Russian central bank hiked interest rates to 20%.

The ruble fell to an all time low against the dollar after markets opened on Monday.

When markets closed on Friday, the Russian currency was worth 83.75 against the dollar.

The central bank raised key interest rates from 9.5% to 20% on Monday.

The central bank confirmed on Monday that it has blocked foreign entities and individuals from selling Russian securities in order to deal with the crisis in the financial market.

The central bank said that it will free local bank reserves in order to improve liquidity.

Several people in Russian cities are already lining up to withdraw cash from ATMs.

The ruble's value has plummeted following a series of economic sanctions imposed by the West against Russia. Russia's central bank was blocked from using its international reserves by the U.S. and its European allies. The Western nations decided to remove several Russian banks from the international banking network. The world's largest wealth fund will sell its Russian assets. The British oil giant said it would give up its 20% stake in the Russian oil firm. The Russian military, which invaded Ukraine last week, has so far failed to capture any major city.

Russia's central bank raised its key interest rate to 20%.

The Financial Times reported that Russia sharply increases rates as sanctions send the rouble plunging.