Plans for a free float of the rouble are likely to be delayed after Russian policy-makers suggested the country's economy is not prepared for unrestricted currency trading. A research report from Citigroup Inc economists predicts that Russia's central bank will delay the free float beyond the official target of 2011.

The experts say Russia is likely to return to "some form of the heavily managed exchange rate regime that existed pre-crisis" in an attempt to limit swings that damage the economy.

Last month, Russian prime minister Vladimir Putin said Russia's "insufficiently diversified" economy, which is expected to grow three per cent after an 8.5 per cent contraction last year, is not prepared for a fully-fledged floating exchange rate. He suggested that measures enabling the rouble to trade freely as Russia diversifies its economy will be "cautiously introduced".

Today's repo auction saw the Russian central bank inject 48.845 billion roubles ($1.65 billion) of seven-day funds into the banking system at a rate of 6.07 per cent. A maximum of 75 billion roubles had been on offer.

Yeaterday's auction of six-month collateral-free loans for commercial banks was cancelled owing to lack of demand amid considerable domestic liquidity and cheap inter-bank rates.