The Soviet Union has created a Moscow Stock Exchange, the first in the country since the 1917 Bolshevik Revolution.
The official Tass news agency said the exchange was founded this week by 187 Soviet enterprises and banks.President Mikhail S. Gorbachev issued an order Oct. 26 permitting Soviet citizens to buy stocks, bonds and other securities as part of his plan to switch from central planning to a market economy.
Tass said the Moscow Stock Exchange would be represented overseas by an international brokerage company that has asked not to be identified. The exchange plans to open offices in the world's major stock exchanges in New York, Frankfurt, Tokyo and Singapore, the news agency said.
Trading in shares was outlawed following the Revolution. A flourishing stock market in St. Petersburg, now Leningrad, was closed along with more than 100 commodity exchanges elsewhere in Russia.
The New York Stock Exchange recently gave a three-day seminar in Moscow on how to revive, operate and regulate financial markets. NYSE Chairman John Phelan and his Soviet hosts agreed that limited trading could begin within a year.
Soviet businessman Eduard Tenyakov, one of the main organizers of a Moscow stock exchange, said the ruble would be valued on par with the U.S. dollar in estimating the currency exchange values of shares.
The ruble is not a convertible currency, and exchange rates are set artificially by the government. A new commercial exchange rate was imposed on Nov. 1, cutting the value of the Soviet currency by nearly 70 percent to discourage imports.
The new rate for international commercial transactions is 1.8 rubles per U.S. dollar, compared to the old .56 rubles to the dollar. The rate for foreign tourists exchanging money in the Soviet Union remained unchanged at six rubles to the dollar.