While in the United States our presses are running full throttle printing money, in Russia just the opposite is happening. In a herculean effort to defend the ruble, which has fallen 35% since autumn, Russia raised its one-day repurchase rate to 10% from 9%. The central bank has already engineered six such increases last year.

Russia has spent over $200 billion in recent months supporting its currency at a level of 41 rubles against a basket of 55% dollars and 45% euros. So far this week, the ruble has held steady at these levels. In addition, the central bank has lent rubles short-term for the equivalent sum of $13 billion, thus sharply reducing the supply of rubles.

Banks that are speculating in the currency markets are betting against the rubles's future. As a result the ruble has dropped to new lows, indicating that Russia is suffering widely from the worldwide economic downturn.

The Russian Central Bank uses a basket of currencies to determine its currency's value.The basket is made up of 55% dollars and 45% euros.On Tuesday the ruble closed at 36.0562 rubles against the basket. This has caused concern in currency circles so the central bank said it was ending its policy of gradual devaluation and setting the lower ceiling of the currency's fluctuation at 41 rubles. To halt the rubles slide, the central bank stepped in and sold dollars.