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Medvedev bets on rouble as Russia defends currency

Published 10/28/2008, 01:21 PM
Updated 10/29/2008, 06:44 AM

MOSCOW, Oct 28 (Reuters) - Russia's rouble may be under pressure but President Dmitry Medvedev has kept his roubles in the bank and has not been buying U.S. dollars, according to comments published on Tuesday.

"I have kept all my accounts at the bank. I have not taken the money out, not changed roubles into dollars and not bought any shares," Medvedev told the Argumenti i Fakti weekly newspaper.

"I am convinced that my savings -- and the money of other Russian depositors -- is not under threat," Medvedev said in comments that will be published in a special edition coming out on Wednesday, according to the www.aif.ru Web site.

The Kremlin is trying to shore up confidence in the Russian economy and the rouble after investors started dumping Russian assets because of fears the global financial crisis could stall a 10-year economic boom.

Russia's leaders insist the rouble will not be devalued.

But currency dealers say the central bank has been spending tens of billions of dollars over the past month to keep the rouble stable versus a euro-dollar basket and foreign currency reserves have fallen.

The rouble has fallen about 4 to 5 roubles against the dollar at Moscow exchange offices over the past three months and the dollar was on sale in central Moscow for about 28.5 roubles on Tuesday.

Some Russians have been changing their roubles into dollars on fears the rouble will decline further. Prime Minister Vladimir Putin, who served as Kremlin chief between 2000 and 2008, last week warned against changing roubles into dollars.

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In official disclosures made before the March presidential election which he won, Medvedev listed eight bank accounts with a total of 2.74 million roubles ($100,200). (Reporting by Guy Faulconbridge, editing by Stephen Nisbet)

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