The Russian ruble plummeted in overnight trading, but the currency has pared some of its losses Monday. The international community has responded to Russia’s invasion of Ukraine, resulting in swift economic consequences and financial repercussions for the Kremlin and the broader economy. But will this be enough to act as a deterrent to President Vladimir Putin?

The US Treasury Department announced Monday that it has banned transactions with the Russian central bank and the nation’s foreign investment fund. The move essentially prohibited the institution from participating in U.S. dollar transactions and limits the government’s ability to diminish the blows of the previous sanctions.

Washington did note, however, that it would make exceptions for the country’s energy-related payments to prevent a spike in global crude oil and natural gas prices.

“Our strategy, to put it simply, is to make sure that the Russian economy goes backwards as long as President Putin decides to go forward with his invasion of Ukraine,” said a senior Biden administration official on a call with reporters.

In response to the massive devaluation of the ruble, officials dramatically raised its benchmark interest rate from 9.5% to 20%. Authorities also urged export firms to sell foreign currency as the ruble slumps to all-time lows.

Central bank officials contend that the emergency rate hike will raise deposit rates to levels “needed to compensate for the increased depreciation and inflation risks,” adding that “this is needed to support financial and price stability and protect citizens’ savings from depreciation.”

Central Bank Governor Elvira Nabiullina is scheduled to hold a special briefing later Monday.

Moreover, Moscow noted that the money supply increased at an annualized rate of 13.4% last month.

In other economic news, industrial production surged 8.6% year-over-year in January, topping the market estimate of 3.5%.

The USD/RUB currency pair increased 14.82% to 96.30, from an opening of 83.86, at 12:36 GMT on Monday. The EUR/RUB rose 14.28% to 108.05, from an opening of 94.54.