Finance and Credit
 

Reasons for post-sanctions ruble devaluation and the problem of its exchange rate optimization

Vol. 24, Iss. 8, AUGUST 2018

Received: 23 April 2018

Received in revised form: 4 June 2018

Accepted: 21 June 2018

Available online: 29 August 2018

Subject Heading: MONETARY ACCOMMODATION

JEL Classification: E42, E52, E58

Pages: 1767–1780

https://doi.org/10.24891/fc.24.8.1767

Kapkanshchikov S.G. Ulyanovsk State University, Ulyanovsk, Russian Federation
kapkansg@yandex.ru

https://orcid.org/0000-0001-9459-5516

Kapkanshchikova S.V. Ulyanovsk State University, Ulyanovsk, Russian Federation
kapkansv@mail.ru

https://orcid.org/0000-0001-9838-1291

Importance The article considers trends in the Russian ruble exchange rate fluctuations during the post-sanctions period from the perspective of their contradictory impact on the Russian economy.
Objectives The aim is to unveil patterns in search of the optimal ruble exchange rate, which contributes to achieving the main macroeconomic goals of contemporary Russia.
Methods We apply a dialectical method to study the common factors governing the formation of the economic policy of the government in their development.
Results The paper highlights reasons behind the post-sanctions devaluation of the Russian currency, underpins the prevailing negative impact of excessive devaluation on the dynamics of GDP and inflationary processes taking place in Russia.
Conclusions and Relevance Ascending economic development is impossible under the current exchange rate of ruble. The largest exporters of commodities, financial speculators and the Ministry of Finance of the Russian Federation are characterized as major beneficiaries of the transition to the floating exchange rate of ruble. Achieving the optimal exchange rate of ruble in the course of overcoming its current undervaluation is seen as a critical success factor in the Russian economy diversification and the 'Dutch disease' eradication.

Keywords: devaluation, sanctions, targeting, exchange rate, Russian ruble

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