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Russia halts ruble trading
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September 18, 1998: 7:37 a.m. ET
Ruble trade halted Friday after currency slips to 19 to the dollar
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NEW YORK (CNNfn) - The Russian central bank Friday moved to halt trading of the ravaged ruble after the currency slipped back to record lows.
The central bank ordered the Moscow Interbank Currency Exchange (MICEX) to halt ruble trading for same day settlement on its electronic system Friday as the currency slipped to around 19 to the dollar for next-day settlement.
The official ruble rate for Friday was 14.6 to the dollar.
The central bank's one-day trading halt was issued in connection with a plan for banks to clear up debts and reinvigorate the payment system.
On Thursday, the central bank said it will begin printing money to buy back government bonds from selected Russian banks. It also allowed some commercial banks in Russia to withdraw their reserves at the central bank to help get the payments system flowing again.
The central bank is reviewing banks' debts Friday.
Overseas banks, which also want to unload their frozen Russian bonds, are frustrated that Russia is showing favoritism to its own domestic banks.
Russia's central bank Thursday dropped its official ruble rate by 15 percent for Friday to 14.6000 to the dollar, following a 23 percent drop in the official ruble rate for Thursday.
The rate, based on trade on the MICEX electronic SELT system and on the interbank market, had been 12.4509 to the dollar for Thursday.
On Wednesday, Russia's central bank also cut the currency by 23 percent to12.4509 per dollar for Thursday.
The rate, based on Wednesday trade on the Moscow Interbank Currency Exchange's electronic system and on the interbank market, had been 9.6117 for Wednesday.
The ruble's sudden downturn prompted record lows on the Russian stock market. 
--from staff and wire reports
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