© . Russian ruble coins are shown ahead of the stock falling chart shown in this image, taken on Feb. 24, 2022. REUTERS/Dado Ruvic/Illustration () -Russia’s central bank raised its key interest rate from 9.5% to 20% on Monday. an emergency measure, and authorities told export-oriented companies to sell foreign exchange as the ruble plunged to record lows. The ruble hit a low of 120 for the dollar on electronic currency trading platform EBS after President Vladimir Putin ordered his military order on Sunday to energize nuclear forces while the West imposed tough sanctions on Russia. In another effort to support the ruble, Russian authorities have ordered Russian export companies to sell 80% of their foreign currency earnings on the market, Finance Minister Anton Siluanov said. Presenting the new emergency measures, central bank governor Elvira Nabiullina said the central bank had halted interventions on Monday due to the latest Western sanctions, suggesting the ruble was supported by other unnamed market participants. The Bank of Russia sold about $1 billion from its reserves on Thursday, Feb. 24, the day Russia began what it calls a “special operation” in Ukraine, and also carried out FX sales on Friday, Nabiullina said. “Due to the restriction on the use of gold forex reserves in dollars and euros, we have not conducted any interventions today,” Nabiullina said. Nabiullina also said Russia has an internal replacement for the international payment system SWIFT, adding that foreign counterparts can join it. RATE RISE The central bank, which says it aims to target inflation at 4% and will do everything necessary to ensure financial stability, said the rate hike will bring deposit rates to levels “necessary to mitigate the heightened risks of depreciation and inflation.” to compensate”. “This is necessary to support financial and price stability and protect citizens’ savings from depreciation,” it said. The rate hike to levels above 17% seen in 2014 when Russia annexed Crimea from Ukraine comes after Western countries moved to block certain Russian banks’ access to the international SWIFT payment system in order to punish Moscow for its invasion of Ukraine. Russia calls its actions in Ukraine a “special operation” that it says aims not to occupy territory, but to destroy the military capabilities of its southern neighbor and imprison what it sees as dangerous nationalists. “External conditions for the Russian economy have changed dramatically,” the central bank said in a statement. The recent steps add to a series of measures announced since Thursday to support domestic markets as the state works to contain the mounting impact of Western sanctions. Russian authorities have also ordered brokers to suspend short selling in the Russian market and stop executing orders from foreign legal entities and individuals to sell Russian securities. “These measures may help calm increased market jitters, but at the same time they undermine the foundation of monetary policy, which focuses on inflation targeting and flexible exchange rates,” BCS Global Markets said in a note. “Adverse external environment made Russian monetary policy unsustainable and we do not rule out a possible rate hike in the future or further unexpected and non-market decisions.” Disclaimer: Fusion Media would like to remind you that the data on this website is not necessarily real-time or accurate. All CFDs (Stocks, Indices, Futures) and Forex prices are not provided by exchanges but rather by market makers, and therefore prices may not be accurate and may differ from the actual market price meaning prices are indicative and not suitable for trading purposes . Therefore, Fusion Media does not bear any responsibility for any trading losses that you may incur as a result of using this data. Fusion Media or anyone associated with Fusion Media accepts no liability for any loss or damage resulting from reliance on any information, including data, quotes, charts and buy/sell signals on this website. Be fully informed about the risks and costs associated with trading the financial markets, it is one of the riskiest forms of investment possible.