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Russia aids rouble’s recovery with floor to assure investors

telegraph.co.uk

Russia aids rouble’s recovery with floor to assure investors

By Katherine Griffiths

Last Updated: 8:35pm BST 05/09/2008

 

 

The rouble recovered from a trough after Russia’s central bank put a floor under the currency. 

The move was the latest attempt by Russian authorities to bring back confidence in the rouble, which has been hit by investors withdrawing large sums of money from Russia. 

The exodus of cash has been prompted by concerns over a series of problems, including Russia’s conflict with Georgia and the clash between several oligarchs and BP over the TNK-BP joint venture. 

The rouble trades against a basket of currencies. Traders yesterday took comfort from comments by Russia’s central bank that it did not plan to allow the rouble to sink further compared to the basket.

  • More on currencies
  • “We are not planning to further widen the boundaries of the corridor in the next few months. For now it suits us,” the central bank’s first deputy chairman, Alexei Ulyukayev, said at a banking conference in Sochi, Russia. He added that the rouble’s recent sell-off was “not critical”.

    The rouble rose to 30.32 against its basket of 0.45 euros and 0.55 dollars, off Thursday’s historic low of 30.41.

    On Thursday there was speculation that Russia’s central bank had sold about $5bn (£2.8bn) to prop up the rouble. Analysts believe about $15bn could have been withdrawn from Russia by nervous investors in recent weeks.

    Russian stocks continued to be hit by political worries and market nerves. The main RTS stock market index was down 7pc in the afternoon to 1,417.

     

     

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