Russia will allow 10% devaluation of ruble

Russia's central bank said Thursday that it will effectively allow the ruble to fall by about 10% against its dual currency basket, ending its policy of gradual mini-devaluations in a move aimed at deterring speculators and stemming the outflow of foreign exchange reserves.

Since last August, Russia's international reserves have plunged by more than $200 billion.The central bank reported Thursday that reserves tumbled by $30.3 billion to stand at $396.20 billion during the week ended Jan. 16.

Through this move, the bank effectively allowed further 10.6% devaluation of the ruble from the pre-announcement 37.04 level, and a cumulative 40% foreign exchange rate adjustment since the middle of 2008