The Russian central bank has increased its key interest rates nearly two times from 9.5% to 20% as its currency, the ruble, hit a record low against the dollar due to a series of new sanctions and penalties imposed on Russia by the US and Europe for its invasion of Ukraine.

“External conditions for the Russian economy have drastically changed,” the central bank said in a statement. The key rate hike will ensure a rise in deposit rates to levels needed to compensate for the increased depreciation and inflation risks. This is required to support financial and price stability and also to safeguard citizens’ savings from depreciation.

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On Monday, the ruble plunged as low as 119.50 per dollar, a significant 30% drop from Friday’s close.

According to a report by Reuters, Central Bank Governor Elvira Nabiullina will hold a briefing at 13.00 GMT.

In another move to support the rouble, the Russian finance ministry and the central bank have jointly ordered Russian exporting companies to sell 80% of their foreign currency revenues on the market.

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The bank added that it would be freeing 733 billion rubles ($8.78 billion) in local bank reserves to boost liquidity.

The rate hike follows the central bank’s order to stop foreigner bids to sell Russian securities to contain the market fallout. On Sunday, it announced assurances to resume buying gold on the domestic market, launch an auction with no limits, and ease restrictions on banks’ open foreign currency positions. It also raised the range of securities that can be used as collateral to avail loans.

The new sanctions are likely to deal a massive blow to the Russian economy and make it harder for Russian banks and companies to access the international financial system.

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The US, European allies, and Canada agreed over the weekend to cut Russian banks from SWIFT, an interbank messaging system that connects over 11,000 banks and financial institutions across 200 countries and territories. On Sunday, the European Union also announced to shut its airspace to Russian aircraft.

In addition, the EU is ramping up its punitive measures against Russia – the strongest measures it has ever enacted against it – in response to offensives being carried out by Russian forces in Ukraine. It follows several days of missile strikes and heavy shelling in Ukraine’s two largest cities, the capital Kyiv and Kharkiv.

On Sunday, Ukraine’s defence ministry said that Ukrainian forces have so far managed to hold back the Russian advances and remain in the control of the two cities.