Informal capital controls stem rouble's slide

Moscow

THE Russian rouble hit its highest levels in two weeks on Tuesday, shored up by informal capital control measures designed to head off a repeat of the galloping inflation and mass protests that marked Russia's 1998 financial crisis.

The government put pressure on state-owned exporters on Tuesday to sell dollars, while officials and banking sources said the central bank had installed supervisors at the currency trading desks of top state banks.

Shortly after the market opening, the rouble hit 52.88 to the dollar, its strongest level since Dec 8. By 1225 GMT, it had fallen back but was still was up 2.3 per cent at 54.52 .

Analysts said the measures were effectively a softer version of capital controls, adding that they did not believe that President Vladimir Putin, who has drawn much of his popularity from financial stability and rising prosp…