Russia took steps to save the economy as sanctions hit banks

Posted on March 7, 2022

• The central bank doubled its key interest rate to 20%, the highest in almost two decades, and imposed some controls on the flow of capital.
• Policymakers prohibited brokers from trading securities held by foreigners because of the risk of a bank run, quick sell-off in assets, and most abrupt depreciation in the ruble that occurred since 1998.
• U.S. and the European Union agreed to block access to $640 billion the country’s central bank has built up as a buffer to protect the economy.
• The U.S. and Europe trying to save the world economy from a greater shock and remain hesitant for now to sanction Russian energy.
• Germany stated that purchases of Russian gas remain possible using SWIFT even after the latest curbs.