Russia to redenominate ruble
August 4, 1997
Web posted at: 5:04 a.m. EDT (0904 GMT)
From Moscow Bureau Chief Jill Dougherty
MOSCOW (CNN) -- The Russian ruble is slimming down beginning
January 1, 1998, President Boris Yeltsin announced Monday.
The new ruble will lose three zeroes; in other words, what
used to cost 1,000 rubles will now cost one ruble, Yeltsin
The purpose was to avoid "stress and trouble," Yeltsin said.
Currently, Russians must deal with unwieldy currency in which
1 million rubles equals only about $175.
Yeltsin said the old rubles will remain in circulation during
1998, along with new rubles. Old rubles can be exchanged for
four years, until the end of 2002.
Yeltsin said no one will lose anything as a result of the
"Nobody's interests will be trampled upon; the reform will
not amount to confiscation," he said, noting that inflation
is under control and prices are basically stable.
"That is why we made the decision to conduct the money
reform," he said. "In doing so, we declare today there will
be no more inflation. An end has been put to it. New zeroes
will never again appear on our banknotes".
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