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. Last Updated: 07/27/2016

Corridors of Power

It's worth noting Anatoly Chubais' words last fall when he said: "The ruble corridor has yet to take effect." The fact is that the ruble rate has not once gone through the corridor's floor or ceiling.

It has been determined for the most part by supply and demand and the stabilizing role of the Central Bank ...

Several experts at the White House are leaning toward the concept of fastening the ruble rate to the rate of inflation as the best option for regulation after July 1.

According to this scheme, the dollar will once again be held within specific boundaries. However these boundaries will not be determined arbitrarily -- the result of a get-together at the presidential dacha -- but on the basis of current inflation data from the State Statistics Committee.

For a specified period (a quarter, for example), the ruble rate will be allowed to rise by a small percentage of the increase in internal prices.

The dollar will be allowed a little freedom of movement in both directions. Incidentally, in the new system the dollar -- in order to avoid the whims of the U.S. currency -- may be replaced with the ecu or some other currency.