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Russians prefer rouble to dollar despite fall

Published 12/18/2008, 08:32 AM
Updated 12/18/2008, 08:35 AM

MOSCOW, Dec 18 (Reuters) - Russians still want to be paid in roubles despite the currency losing almost fifth of its value against the dollar since the summer, polling data showed on Thursday.

Maintaining confidence in its currency is a key plank of Russian financial policy in the global economic crisis and the Central Bank has spent around $100 billion propping up the rouble since early August.

The bank started a programme of gradual depreciations on Nov. 11 and the rouble is now trading down 18 percent since a nine year high in July. First Deputy Prime Minister Igor Shuvalov on Thursday said the currency could rebound quickly.

"So far Russians seem to trust the national currency, but it's not so much a positive sign towards the rouble but more a negative sign towards foreign currencies and it may only be short-term," said Olga Kamenchuk of VTsIOM pollsters.

VTsIOM's data showed that 80 percent of the respondents want to be paid in roubles, up from 78 percent in October but down from 96 percent in 2006.

The rouble had made gains against the dollar and the euro in recent years during a surge in the price of oil -- the main driver of the Russian economy.

This confidence assisted Moscow's conversion from a dollar-based economy following a rouble devaluation 10 years ago that wiped out people's savings.

VTsIOM asked 1,600 people from around the country questions on the economy on Dec. 6/7 during the recent series of managed currency depreciations.

The Central Bank weakened the rouble for the third time in four days on Thursday, allowing the rouble to drop to an all time low against the euro although it still retained its value against a weakened dollar.

In the poll, nearly half of Russians said they now accept the country is in the grip of an economic crisis but 56 percent did not know about their government's plans to fight it.

"Russians had said this was a crisis for the United States and the Western world mainly because they didn't see the results in the real sector," Kamenchuk said. "Now though, the media has started talking about it and of course, the prime minister."

Prime Minister Vladimir Putin spoke about the impact of the economic crisis during a television address this month though rising food prices, inflation and job cuts are still only lightly reported by Russia's mainstream media.

The poll showed that 47 percent of Russians believe the economic crisis will be long-term compared to 33 percent in October, the poll showed. -- For a related rouble story, please click on [ID:nLI445962]

(Reporting by James Kilner; Editing by Jon Boyle)

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