Hrad Times Essay

Hrad Times Essay

… . These spreads generally amount to about .3 rubles; less than a penny. This reflects the relatively stable system of exchange that has predominated since the 1998 Russian bank defaults, steadily depreciating from 28 to the dollar to the current approximate exchange rate of 31.5. The Putin administration, until 2003, had favored a steady fall against the dollar and Central Bank officials had expressed confidence that the exchange rate would reflect only a slight weakening of the Ruble over the course of the next year; the exchange rate was expected to reach 33.7:1. According to the Moscow Times, The bank has also had to reverse direction on its gradual depreciation policy for the ruble, and is now targeting a 6 percent real appreciation against the dollar for the year. The currency, which has been steadily gaining against the greenback, rose another 3 kopeks to 31.55 to the dollar on Thursday. (Moscow Times, Friday, Feb. 21, 2003) This is in sharp contrast with the hyper-inflation that characterized the Ruble¬ís progress prior to the defaults.
However, a more in-depth analysis of the ruble reveals this to be misleading. The ruble is not a fully convertible currency …

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