The Russian Currency Basket: The Rising Role of the Euro for Russia’s Exchange Rate Policies
AbstractIn 2005, the Bank of Russia has made three announcements that indicate an increasing role for the euro in the Russian exchange rate strategy. On February 4 2005 the Bank of Russia announced that it has started to stabilize the daily volatilities of the Russian ruble against a dollar- euro currency basket. While the announced weight of the euro was 10% (90% dollar) by then, the Bank of Russia increased this weight to currently 40% within ten months. Bank of Russia representatives have stressed the intention to increase the weight of the euro the Russian currency basket further up to 50% but without indicating a specific time horizon. Other statements of Bank of Russia representatives have stressed the rising role of euro as intervention and reserve currency. This paper reviews the recent trends in Russian exchange rate strategy with a focus on the role of the euro.
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Bibliographic InfoPaper provided by EconWPA in its series International Finance with number 0512005.
Length: 12 pages
Date of creation: 20 Dec 2005
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Note: Type of Document - pdf; pages: 12
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Words: Russia; Currency Basket; International Role of the Euro.;
Find related papers by JEL classification:
- F31 - International Economics - - International Finance - - - Foreign Exchange
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-01-01 (All new papers)
- NEP-FMK-2006-01-01 (Financial Markets)
- NEP-MON-2006-01-01 (Monetary Economics)
- NEP-TRA-2006-01-01 (Transition Economics)
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