Logo
  Thursday, April 9, 2020
Sign-In  |  Sign-Up  |  Contact Us  |  Bookmark 

The Russian Central Bank announced a change in policy beginning in February to "bi-currency benchmarking"
The Russian Central Bank announced a change in policy beginning in February to "bi-currency benchmarking," in a move that is widely perceived as a confirmation that both the euro and the dollar would be officially seen as the benchmarks for the ruble exchange rate. This may result in faster downgrading of the dollar versus the ruble, the Russian daily newspaper Izvestia reported. In the new currency basket, the dollar accounts for 87 percent and the euro, for 13 percent. This ratio will probably change gradually, until the two currencies are equal in weight. According to Anton Struchenevsky, an analyst with Troika Dialog, the analysis of the exchange rate suggests that the Central Bank has, in effect, been using bi-currency benchmarking at least since 2003. Bi-currency benchmarking is aimed at limiting the growth of the real ruble rate to render the Russian economy more competitive in non-dollar areas of the world. This year, the Central Bank plans to limit the growth of the real effective ruble rate by percent. Although officially this rate is pegged to 34 various currencies, a quite adequate model includes only two of them - the dollar and the euro - because many countries peg their own currencies to these two currencies. In such a model, the dollar/euro ratio is approximately 40:60. Mr. Struchenevsky said the Russian market has been operating on this ratio basis for quite some time now. UFG analysts say the ruble, when pegged to the euro and the dollar, may begin growing faster against the dollar than now, building on Russia's high trade surplus and resumed capital inflow.
Print The Russian Central Bank announced a change in policy beginning in February to Bookmark The Russian Central Bank announced a change in policy beginning in February to

Related News   
JanFebruary 2005Mar
MoTuWeThFrSaSu
31123456
78910111213
14151617181920
21222324252627
28123456
78910111213