The Bank of Russia said in a short statement that it "temporarily bans brokers from selling securities at instructions of non-residents" on the Moscow Exchange. The ruble and Russian stock prices have plummeted since the invasion and a series of Western financial sanctions have been rolled out over the past week.
The central bank said that the Moscow bourse would resume trading in the foreign-exchange and money markets, but that the stock exchange would remain closed for the day. It has been intervening to support the markets since Thursday, when Russia invaded Ukraine.
"Due to the current situation, the Bank of Russia has decided not to open a stock market section, a derivatives market section or a derivatives market section on the Moscow Exchange today," the central bank said. It said it would provide an update on when it will reopen on its website early Tuesday.
The Bank of Russia was also forced to boost its key benchmark interest rate to 20% from 9.5% to help stem the ruble's decline. The ruble was trading at 109 to the dollar early on Monday — a 23% decline value from 84 per dollar on Friday and 29% from 77 to the greenback on Monday a week ago.
"The increase of the key rate will ensure a rise in deposit rates to levels needed to compensate for the increased depreciation and inflation risks," the bank's board said. "This is needed to support financial and price stability and protect the savings of citizens from depreciation."
--Editing by Joe Millis.
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