London, Monday, 21 February 2022 -
After President Vladimir Putin signed a proclamation officially recognizing the self-proclaimed Donetsk and Luhansk republics in eastern Ukraine as autonomous entities, the Russian ruble plummeted toward 80 per USD, approaching values last seen in October 2020.
Several EU leaders have criticised Putin's action and stated that individuals participating in the illegal act will face penalties. In addition, the United States will issue an executive order barring investment, commerce, and finance in Ukraine's separatist territories.
Meanwhile, Governor Elvira Nabiullina of the Central Bank of Russia said the bank has yet to decide when to resume foreign exchange purchases because the ruble remains extremely volatile.
The CBR raised its base rate by 100 basis points to a five-year high of 9.5 percent on February 11th, as predicted, but policymakers hinted that further hikes could be made in future sessions to keep inflation under control.
(Written and edited by: The Decision Maker)