"I talked with the chairman of the Central Bank yesterday, and [he said] we are registering a large inflow of foreign currency, private capital, which according to estimates, totaled $27 billion in the first nine months [of 2006]," Putin said during a meeting with Finance Minister Alexei Kudrin.
Kudrin said that the current inflow had been reflected in direct investments, which had also increased this year by $2.7 bln from $18.1 bln in 2005 to $20.8 bln in 2006. In terms of direct investment, Russia has outpaced Japan, Canada and other leading countries in 2006, the minister said.
"This shows that the economy, industrial enterprises are being modernized, but our objective is to direct the growing currency inflow into manufacturing and the government is currently working on this," Kudrin said.
The minister said Russia must develop financial institutions strictly regulating the money supply in the country to slow down inflation and stabilize currency exchange rates.
Kudrin said in August that Russia's government would use economic measures to hold back the ruble's further rise, and intends to keep the national currency's appreciation within 4.7% of its average effective rate this year.
