Russia hit by market turbulence

The net capital inflow to Russia hit a record $67.1 billion in the first half of 2007, the Central Bank of Russia (CBR) has said.

However, the onset of turbulence on international financial markets, which erupted on 9 August, triggered a reversal of capital flow. The two weeks from 10 August to 23 August were the most difficult. Over the period, the Central Bank's foreign exchange reserves shrank by $6.4 billion, inter-bank rates rose from an average between 3% and 4% to 10% and bonds depreci

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