Forex Blog: Currency Trading News & Analysis.

April 29th 2005

Russia may appreciate Ruble

In response to rising inflation, Russia may allow the Ruble to appreciate. Russia’s Central Bank has set a target inflation rate of 8.5%, which, if achieved, would actually represent a 3% decrease from 2004. Soaring commodity prices, have trickled down through Russia’s economy, triggering a broad increase in prices. Russia currently maintains a "managed float" exchange rate regime, in which the value of the Ruble is technically determined by market forces. However, the Central Bank intervenes on a daily basis, to essentially fix the value of the Ruble against a basket of currencies. Rather than raise interest rates, Russia’s Central Bank will likely allow the exchange rate to appreciate against the USD and the Euro, so that Russia will receive more Rubles for its exports, namely commodities. The Financial Times reports:

An economist at Moscow Narodny Bank, added: “Inflation pressures are very prominent and, given the limited sterilization instruments, the burden is going to be placed on the exchange rate.”

Read More: Russia may allow currency to gain

SocialTwist Tell-a-Friend
Posted by Adam Kritzer | in Exotic Currencies | No Comments »

Sponsored Offers

FREE Daily Email Updates

Enter your email address:

Delivered by FeedBurner

Have Questions? Want to Share Your Review?

Be heard. Please share your reviews today!

Neighboring Posts

© 2004 - 2024 Forex Blog.org. Currency charts © their sources. While we aim to analyze and try to forceast the forex markets, none of what we publish should be taken as personalized investment advice. Forex exchange rates depend on many factors like monetary policy, currency inflation, and geo-political risks that may not be forseen. Forex trading & investing involves a significant risk of loss.