The "Sudden" Transition to the Free Floating Exchange Rate Regime in Russia in 2014

Authors

  • Evgenii V. Gilenko Graduate School of Management of St. Petersburg State University

Keywords:

International reserves, adequacy rules, currency interventions, econometric modeling and forecasting

Abstract

The events of the fall of 2014 in the Russian currency market forced Bank of Russia to change the exchange rate regime in the national economy. In this study we show that in 2014 the regulator was trying to protect ruble (the Russian national currency) against a massive speculative attack, actively spending its international reserves, but the interventions proved quite ineffective. Moreover, the peculiarity of the structure of these reserves dictated a very limited range of maneuver for the central bank, forcing it to switch to the free floating exchange rate regime in the first half of November, 2014 - an important event, which, actually, could have been predicted by the lay experts on the basis of publically available information and application of simple econometric models. Noteworthy to say that, although not expectedly to the lay population, this switch of the exchange rate regime was done by Bank of Russia quite timely.

Downloads

Published

2017-06-05

How to Cite

V. Gilenko, E. (2017). The "Sudden" Transition to the Free Floating Exchange Rate Regime in Russia in 2014. Journal of Reviews on Global Economics, 6, 181–192. Retrieved from https://lifescienceglobal.com/pms/index.php/jrge/article/view/4690

Issue

Vol. 6 (2017)

Section

Special Issue - Monetary Policy in a Post-Crisis World: Experiences and Practices

License

Policy for Journals/Articles with Open Access

Authors who publish with this journal agree to the following terms:

  • Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.

  • Authors are permitted and encouraged to post links to their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work

Policy for Journals / Manuscript with Paid Access

Authors who publish with this journal agree to the following terms:

  • Publisher retain copyright .

  • Authors are permitted and encouraged to post links to their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work .