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. Last Updated: 07/27/2016

Liberals Attack Currency Board

Russian liberals have dismissed a proposal to stabilize the ruble by introducing a currency board, saying the country could not afford it and it would not solve key problems.

The scheme requires every ruble printed to be covered by foreign reserves.

This would amount to some $40 billion of foreign reserves, roughly four times the current level, Grigory Yavlinsky, head of liberal opposition party Yabloko, said Friday in the German capital, Bonn, adding that Russia could not afford such a plan.

Former central banker Sergei Aleksashenko said a currency board would not solve Russia's main problem, a weak budget.

"The reason for this crisis is a very weak budget, and a currency board cannot resolve this problem. That is why it seems to me a good instrument but the wrong instrument for Russia," Aleksashenko said.

The currency board scheme has been supported recently by Stanley Fischer, deputy chief of the International Monetary Fund and U.S. financier George Soros.