Russia has more than doubled its key interest rate after the rouble slumped by 30 per cent against the US dollar, BBC reported.
The Bank of Russia said it raised the rate to 20 per cent from 9.5 per cent to help cushion the impact on prices of the rouble's slide, the report said.
The move came after Western nations announced new sanctions against Russia over its invasion of Ukraine.
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The Russian currency hit a new record low after some of the country's banks were banned from using the Swift international payment system, BBC reported.
On Sunday, Russia's central bank appealed for calm amid fears that there could be a run on the country's banks.
Growing tensions also helped push Brent crude oil above $100 a barrel.
Russia is heavily reliant on the Swift system for its key oil and gas exports.
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"Unless the Russian central bank and Russia's largest banks - which have already been cut off from correspondent banking - find an alternative means of reaching the global financial system Russia faces Iran and North Korea-style isolation from the global economy," Ari Redbord from blockchain analytics firm TRM Labs told the BBC.
