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. Last Updated: 07/27/2016

Ruble Edges Upward

The ruble recovered slightly Tuesday, rising to 561 to the dollar while Russia's Central Bank chief defended his policies from government attack, and accused politicians of currying favor with advisers from the International Monetary Fund.


A Moscow Interbank Currency Exchange spokesman said volume traded was $55. 6 million, up from $46. 5 million at the last session Thursday. The supply of dollars at $64. 4 million exceeded demand of $54. 5 million.


Central Bank Chairman Viktor Gerashchenko, quoted by Itar-Tass, dismissed accusations that the Central Bank was fueling inflation by pumping money into the economy. Ministers say the Central Bank is torpedoing government efforts to control inflation and protect the ruble.


Deputy Prime Minister Boris Fyo-dorov told British television that so far the Central Bank had been "talking more about production than money". Gerashchenko said the government's 1993 spending plans were not realistic, and another 6 trillion rubles ($10. 7 billion) would be needed this year.


Spending on this scale would make a mockery of government plans for a 1993 budget deficit of 3. 5 trillion rubles. Economics Minister Andrei Nechayev said inflation had reached a critical level.


"Prices went up by 26-30 percent in January, and they will go up substantially in February, too", Russian radio quoted him as saying.