Publication: Monitor Volume: 3 Issue: 224

The ruble remains under strong speculative pressure and the Russian Central Bank yesterday raised all its Lombard rates to 36 percent in an effort to protect the currency from further decline. The refinancing rate, which was raised last month, remains unchanged at 28 percent. According to Central Bank chairman Sergei Dubinin, foreign investors have repatriated U.S. $5 billion from Russia’s government debt markets in recent weeks, undermining the ruble and forcing the Central Bank to spend over $1 billion of its hard currency reserves in an effort to prevent the ruble from sliding further. (Financial Times, December 2)

IMF Mission in Moscow.