MOSCOW, February 28. /TASS/. Russia’s economy is facing a non-standard situation, in which the Bank of Russia uses any necessary instruments, while local banks have sufficient reserves to boost raising liquidity from the regulator, if necessary, Central Bank Governor Elvira Nabiullina told a press conference following the regulator’s board meeting on Monday.

"Our financial system, the economy is currently facing an absolutely non-standard situation, and the Bank of Russia will have a very flexible approach to using any necessary instruments," she said.

Regarding liquidity of the banking sector the Bank of Russia is constantly providing cash and non-cash liquidity in rubles to banks, Nabiullina said. "Due to high demand for cash the banking sector has shifted to structural deficit of liquidity. Banks have sufficient reserves to boost raising liquidity from the Bank of Russia, if necessary," she explained.

Earlier on Monday the board of directors of the Bank of Russia decided to increase the key rate from 9.5% to 20% per annum starting February 28. The move will support the financial and price stability and protect the savings of citizens from depreciation, the regulator said.