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About Some Problems in Currency Exchange Sphere

Mikhail Vladimirovich Ershov (), Anna Stanislavovna Tanasova (), Victor Yuryevich Tatuzov () and Mels Pavlovich Tskhovrebov ()
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Mikhail Vladimirovich Ershov: Financial University under the Government of the Russian Federation
Anna Stanislavovna Tanasova: Financial University under the Government of the Russian Federation
Victor Yuryevich Tatuzov: Financial University under the Government of the Russian Federation
Mels Pavlovich Tskhovrebov: Financial University under the Government of the Russian Federation

Spatial Economics=Prostranstvennaya Ekonomika, 2018, issue 3, 152-164

Abstract: The new trend of global economic growth for now appears unstable. A certain threat to stability is represented by continuous growth of the world financial markets without significant correction, which leads to overheating of certain indicators. Besides, the growth of interest rates in the developed markets threatens the stability of currency in countries with developing markets, especially where floating exchange rate has been introduced. The risky situation is not helped by the tensions in geopolitics. External shocks will inevitably transfer on the internal economics of Russia due to free floating of the ruble. Currency is a significant channel of such transfer: any deterioration of situation in Russia would contribute to volatility of currency market and depreciation of ruble. The article analyzes the specifics of currency sphere in Russia today, studies negative and positive sides to ruble depreciation. The quality improvement and formation of comparative conditions in the currency market of Russia is necessary for stability and increasing rates of economy growth. Most branches of Russian economy benefit from stable ruble exchange rate. Adding to that, the expansion of economic sanctions announced by the USA to come into effect at the end of summer 2018 can contribute to volatility and further depreciation of the ruble. The Bank of Russia should take active measures towards ruble stability, prevention of depreciation and minimization of negative consequences for Russian economy. The article suggests several such measures to provide stability and prevent the growth of currency speculation: low currency position, lower leverage, Tobin tax, etc.

Keywords: exchange rate; PPP; financial markets; exchange rate volatility; depreciation of currency (search for similar items in EconPapers)
JEL-codes: G15 N20 F33 (search for similar items in EconPapers)
Date: 2018
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Handle: RePEc:far:spaeco:y:2018:i:3:p:152-164