Russia in steps to boost rouble

Russia has spent more of its reserves in the past week to boost its currency, recent central bank figures show.

Gold and foreign exchange reserves have fallen by $15bn (£9.3bn) to $515.7bn in seven days.

Separately, the country's State Duma has amended its budget to boost funds for the financial sector.

And foreign investors have been withdrawing money from Russia following its intervention in Georgia, adding to fears over the economy's stability.

As the price of oil has weakened, the value of Russia's reserves have fallen recently.

"A sliding oil price will uncertainly test the government's resolve and willingness to use ever large amounts of the country's monetary reserves to defend the rouble," said Chris Weafer, an analyst with Uralsib.

The amount of Russia's reserves is viewed as key for rating agencies to assess the quality of Russia's debt rating. Lower reserve levels make the cost of insuring sovereign Russian debt against default more expensive.

'World practices'

Meanwhile, the government has been taking steps to calm recent market jitters.

The lower house of parliament has passed changes to the budget allocating 175bn roubles (£4bn) to help financial firms, Itar-Tass news agency reported.

The Deposits Insurance Agency will get a further 200bn roubles, while depositors will gain more protection.

Global shares have fluctuated sharply in recent days amid continued uncertainty over the state of the world economy and fears of a widespread recession.

Russia has closed its main stock market on a number of occasions in response to high volatility.

Vladislav Reznik, the chairman of the State Duma's financial market committee, said the current financial turmoil justified special interference by the state.

"Such an approach matches world practices. It was tested in Russia after the financial crisis of 1998," he said.