The Russia crisis: one chart to watch

The Russian ruble has rallied over the past 24 hours, but there are growing signs that the crisis is spreading to the banking sector. In particular, interbank interest rates have jumped to over 27%, which is well above the cost of central bank liquidity and suggests that the interbank lending market may be starting to freeze up. This has often been a precursor to banking crises and, as a result, the interbank rate will be a key indicator for investors to watch over the coming days and weeks.