Why not defend the ruble by buying gold instead?

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In Shift, Russia Lets Ruble Float Free in Markets

By Vladimir Isachenvov and Laura Mills
Associated Press
via Yahoo News
Monday, November 10, 2014

MOSCOW -- With the Russian ruble in a nosedive under the pressure of Western sanctions and slumping oil prices, the country's central bank decided today to freely float the currency in markets and stop regularly spending billions in a vain attempt to stem its fall.

The bank has been burning through its reserves, which plunged from $510 billion at the year's start to about $400 billion now, to soften the drop in the ruble, which has lost about half its value since the beginning of the year as investors pulled money out of Russia and the economy headed toward recession. It spent $30 billion last month alone — an unsustainable rate.

On Monday, the central bank said it would let the market decide what value to give the ruble, which touched a record low of above 48 to the dollar on Friday. It also warned, however, that it would be ready to intervene if necessary to maintain financial stability.

A free float could see the ruble depreciate further in the longer term, stoking inflation and other economic problems for Russians. But investors welcomed the central bank's move as a necessary step protect the nation's hard currency reserves and curb market speculation. ...

... For the remainder of the report:

http://news.yahoo.com/russia-allows-free-floa...-100311279--...