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IN A BOW TO THE WEST, RUSSIA DECIDED TO MAKE its ruble convertible to foreign currencies for the first time in nearly seven decades. The goal is to free the price of the ruble to float, possibly as early as Aug. 1, though most experts say the process could take longer. Moscow is counting on the measure to attract foreign investors who will then be able to calculate real prices and costs. They will also be able to take profits -- if they make any -- out of the country.

The price of the ruble is currently set at several rates by the government and the black market, ranging from 55 to 150 rubles to the dollar. Using a stabilization fund of $6 billion provided by Western nations to buy and sell in the money market, Moscow hopes to hold the ruble at a single rate of about 80 rubles to the dollar. But before Russia can use the stabilization fund, it will have to reach agreement with the International Monetary Fund on an overall economic-reform program. Only a few years ago, the Soviet government used an official exchange rate of $1.60 or more for one ruble, but no one took it seriously. Russian workers in those days preferred to be paid whenever possible in vodka or cigarettes.