Elvira Nabiullina, chief of the Central Bank of Russia, is facing one of the most tumultuous phases in her career.<a name="_Hlk97459200"></a>

The technocrat-turned-economist may have steered Russia’s economy through a series of economic shocks over the past few years, but the latest sanctions announced by the West in the wake of the invasion of Ukraine are stretching her ability to keep the economy on track.

With inflation rising and the ruble plunging by more than a quarter, Nabiullina last Monday announced that the central bank’s key interest rate would more than double to a record 20 percent to curb price rises.

She admitted that the Russian economy was "dealing with a completely non-standard situation" under "conditions that have fundamentally changed".

More than her grim analysis of the economy, it was the way she spoke and her choice of clothing that caught the attention of many.

Nabiullina is well-known not only for her hawkish economic policies, but also for her symbolic attire, which hints at her policy thinking.

In May 2020, when the government urged people to stay at home, she wore a house-shaped brooch. A month later, after cutting rates, she chose a pigeon – in Russian, the word also means "dove".

But on Monday, she wore a funeral black dress to her conference, which many perceived to be a symbol of the death of the Russian economy.

Sergei Guriev, a professor of economics at Sciences Po in Paris and a leading authority on Russia, said that Monday’s coded message was to demonstrate the severity of the blow being dealt by western sanctions.

"This time she was in black and had no brooch. It should not be read as she disagreed with Putin’s policy, but as a sign that it is time to bury normal monetary policy," Guriev told the Guardian.

Analysts expect Russia’s economy could be set for a&nbsp;deeper recession this year than the one caused by COVID-19.

Sanctions freezing the central bank’s assets have severely limited Nabiullina’s room for manoeuvre. Out of $630 billion (£475 billion) in foreign currency reserves built up by the central bank – which could have been used to protect the rouble – experts say much of the sum has been rendered useless.

Many Russian economists have expressed doubts about whether she will complete her five-year term, which expires in June.

Although they say her priority could be to help protect ordinary Russians from the consequences of Putin’s actions by staying in post.

(With inputs from agencies)

Elvira Nabiullina, chief of the Central Bank of Russia, is facing one of the most tumultuous phases in her career. The technocrat-turned-economist may have steered Russia’s economy through a series of economic shocks over the past few years, but the latest sanctions announced by the West in the wake of the invasion of Ukraine are stretching her ability to keep the economy on track.

Elvira Nabiullina, chief of the Central Bank of Russia, is facing one of the most tumultuous phases in her career. The technocrat-turned-economist may have steered Russia’s economy through a series of economic shocks over the past few years, but the latest sanctions announced by the West in the wake of the invasion of Ukraine are stretching her ability to keep the economy on track. With inflation rising and the ruble plunging by more than a quarter, Nabiullina last Monday announced that the central bank’s key interest rate would more than double to a record 20 percent to curb price rises. She admitted that the Russian economy was "dealing with a completely non-standard situation" under "conditions that have fundamentally changed". More than her grim analysis of the economy, it was the way she spoke and her choice of clothing that caught the attention of many. Nabiullina is well-known not only for her hawkish economic policies, but also for her symbolic attire, which hints at her policy thinking. In May 2020, when the government urged people to stay at home, she wore a house-shaped brooch. A month later, after cutting rates, she chose a pigeon – in Russian, the word also means "dove". But on Monday, she wore a funeral black dress to her conference, which many perceived to be a symbol of the death of the Russian economy. Sergei Guriev, a professor of economics at Sciences Po in Paris and a leading authority on Russia, said that Monday’s coded message was to demonstrate the severity of the blow being dealt by western sanctions. "This time she was in black and had no brooch. It should not be read as she disagreed with Putin’s policy, but as a sign that it is time to bury normal monetary policy," Guriev told the Guardian. Analysts expect Russia’s economy could be set for a deeper recession this year than the one caused by COVID-19. Sanctions freezing the central bank’s assets have severely limited Nabiullina’s room for manoeuvre. Out of $630 billion (£475 billion) in foreign currency reserves built up by the central bank – which could have been used to protect the rouble – experts say much of the sum has been rendered useless. Many Russian economists have expressed doubts about whether she will complete her five-year term, which expires in June. Although they say her priority could be to help protect ordinary Russians from the consequences of Putin’s actions by staying in post. (With inputs from agencies)

Russian Central Bank chief noted for coded dress wears funeral black to signal death of economy

Russia's central bank announced Monday it was raising its key interest rate to 20 per cent from 9.5 per cent.

"The Bank of Russia's board of directors has decided to raise the key rate to 20 percent," the central bank said in a statement.

It said it was taking the emergency measure because the Russian economy's situation had "drastically changed".

The bank said that this would allow it to "support financial and price stability and protect citizens' savings from depreciation".

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Western nations ramped up the pressure with a freeze on Russia’s hard currency reserves, threatening to bring Russia’s economy to its knees.&nbsp;

While they hope to curb President Vladimir Putin’s aggression after he unleashed Europe’s biggest conflict since World War II, the measures also risked pushing an increasingly cornered Putin closer to the edge.

Russians waited in long queues outside ATMs on Sunday, worried that new Western sanctions over Moscow's invasion of Ukraine will trigger cash shortages and disrupt payments.

Also see |&nbsp;<a href="https://www.wionews.com/photos/ukraine-attack-wars-in-europe-since-fall-of-berlin-wall-457392" hreflang="en">Ukraine attack: Wars in Europe since fall of Berlin Wall</a>

Moves to block some Russian banks from the SWIFT global payments system and freeze the Bank of Russia's reserves are expected to deal a severe economic blow, although Russian authorities and lenders sought to assuage fears.

While the SWIFT move will hinder Russian banks from communicating with international peers, analysts say limiting the use of more than $630 billion in international reserves could prove even costlier for Russia.

Also read |&nbsp;<a href="https://www.wionews.com/world/russias-ruble-falls-to-117-per-us-dollar-a-decline-of-41-457280" hreflang="en">Russia's ruble falls to 117 per US dollar, a decline of 41%</a>

Sergey Aleksashenko, a former deputy chairman of the Russian central bank who now lives in the United States, said that Russia's national wealth fund would effectively disappear.

"(President Vladimir) Putin and (former Finance Minister Alexei) Kudrin built it up for years, thinking about a major war," he said. "War has come, and there is no money."

Meanwhile, rates offered for foreign exchange shot up. The rouble closed on Friday at 83 to the dollar, but some lenders were offering rates of above 100 on Sunday.

The central bank also announced a compulsory measure for companies based in Russia that earn foreign currency through exports to sell currency amounting to 80 per cent of their earnings.&nbsp;

(With inputs from agencies)

&nbsp;

Russia's central bank announced Monday it was raising its key interest rate to 20 per cent from 9.5 per cent. "The Bank of Russia's board of directors has decided to raise the key rate to 20 percent," the central bank said in a statement.

Russia's central bank announced Monday it was raising its key interest rate to 20 per cent from 9.5 per cent. "The Bank of Russia's board of directors has decided to raise the key rate to 20 percent," the central bank said in a statement. It said it was taking the emergency measure because the Russian economy's situation had "drastically changed". The bank said that this would allow it to "support financial and price stability and protect citizens' savings from depreciation". Western nations ramped up the pressure with a freeze on Russia’s hard currency reserves, threatening to bring Russia’s economy to its knees. While they hope to curb President Vladimir Putin’s aggression after he unleashed Europe’s biggest conflict since World War II, the measures also risked pushing an increasingly cornered Putin closer to the edge. Russians waited in long queues outside ATMs on Sunday, worried that new Western sanctions over Moscow's invasion of Ukraine will trigger cash shortages and disrupt payments. Also see | Ukraine attack: Wars in Europe since fall of Berlin Wall Moves to block some Russian banks from the SWIFT global payments system and freeze the Bank of Russia's reserves are expected to deal a severe economic blow, although Russian authorities and lenders sought to assuage fears. While the SWIFT move will hinder Russian banks from communicating with international peers, analysts say limiting the use of more than $630 billion in international reserves could prove even costlier for Russia. Also read | Russia's ruble falls to 117 per US dollar, a decline of 41% Sergey Aleksashenko, a former deputy chairman of the Russian central bank who now lives in the United States, said that Russia's national wealth fund would effectively disappear. "(President Vladimir) Putin and (former Finance Minister Alexei) Kudrin built it up for years, thinking about a major war," he said. "War has come, and there is no money." Meanwhile, rates offered for foreign exchange shot up. The rouble closed on Friday at 83 to the dollar, but some lenders were offering rates of above 100 on Sunday. The central bank also announced a compulsory measure for companies based in Russia that earn foreign currency through exports to sell currency amounting to 80 per cent of their earnings. (With inputs from agencies)

Central Bank of Russia hikes key rate to 20% from 9.5% amid sanctions

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Russian Central Bank chief noted for coded dress wears funeral black to signal death of economy

Central Bank of Russia hikes key rate to 20% from 9.5% amid sanctions