New Plans To Save The Russian Rouble

18 Dec , 2014

New measures are being put in place in Russia to try and stabilise the rouble or at least try to stem its recent slump against the dollar.

If necessary, the central bank plans to provide additional capital to Russia's banks and financial companies. There are also plans to hold more foreign exchange auctions if required.

The rouble has regained some of the ground from Tuesday's all-time low, although trading remains edgy and volatile.

Over the last few weeks the rouble has been hit hard by worries over the Russian economy, which has been affected by cheaper oil and western sanctions. A problem that may be about to get worse, as US President Barack Obama is due to sign legislation this week that authorises more economic sanctions on Russia.

There is not much more Russia can do to prop up its currency, which has only been allowed to move in line with the world's currency markets in the past year. Capital control, where money is restricted from moving out of the country, is the last real resort. However, the Russian Prime Minister, Dmitry Medvedev, has so far ruled that out.