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The ruble exchange rate and the price of oil: assessment of the degree of dependence, its causes and ways of overcoming

Author

Listed:
  • Aleksei Anatolievich Ustiuzhanin

    (Tyumen State University, Russian Federation)

  • Irina Aleksandrovna Liman

    (Tyumen State University, Russian Federation)

  • Elena Petrovna Kiselitsa

    (Tyumen State University, Russian Federation)

  • Natalia Nikolaevna Shilova

    (Tyumen Industrial University, Russian Federation)

  • Tatiana Ivanovna Leyman

    (Tyumen State University, Russian Federation)

Abstract

This article is an attempt to estimate the impact of the volatility of oil prices on the income of Russian economic entities associated with the oil realization, as well as the importance of the price of oil in stabilizing the exchange rate of the national currency. The authors have analyzed dependencies between the variance of the price of oil, ruble exchange rate against the US dollar and Russian oil export volume and observed the correlation between these indicators. It has been concluded that the problems of the Russian economy are expressed in the loss of dollar revenues from oil sales by 2.37 times in the last five years, which significantly affected the trade balance and served as the basis for the devaluation of the ruble. According to the results of the research, the authors suggest several solutions for raising the price of oil and stabilizing the ruble exchange rate.

Suggested Citation

  • Aleksei Anatolievich Ustiuzhanin & Irina Aleksandrovna Liman & Elena Petrovna Kiselitsa & Natalia Nikolaevna Shilova & Tatiana Ivanovna Leyman, 2019. "The ruble exchange rate and the price of oil: assessment of the degree of dependence, its causes and ways of overcoming," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(1), pages 121-132, September.
    • Handle: RePEc:ssi:jouesi:v:7:y:2019:i:1:p:121-132
    DOI: 10.9770/jesi.2019.7.1(10)
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    References listed on IDEAS

    as
    1. Dreger, Christian & Fidrmuc, Jarko & Kholodilin, Konstantin & Ulbricht, Dirk, 2015. "The Ruble between the hammer and the anvil: Oil prices and economic sanctions," BOFIT Discussion Papers 25/2015, Bank of Finland Institute for Emerging Economies (BOFIT).
    2. Christian Dreger & Konstantin Kholodilin, 2015. "The Ruble between the Hammer and the Anvil: The Impact of Oil Prices and Economic Sanctions," DIW Economic Bulletin, DIW Berlin, German Institute for Economic Research, vol. 5(44), pages 587-591.
    3. Sosunov, K. & Ushakov, N., 2009. "Determination of the Real Exchange Rate of the Ruble and Assessment of Long-Run Policy of Real Exchange Rate Targeting," Journal of the New Economic Association, New Economic Association, issue 3-4, pages 97-121.
    4. Chen, Shiu-Sheng & Chen, Hung-Chyn, 2007. "Oil prices and real exchange rates," Energy Economics, Elsevier, vol. 29(3), pages 390-404, May.
    5. repec:zbw:bofitp:2015_025 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Deepika Krishnan & Vishal Dagar, 2022. "Exchange Rate and Stock Markets During Trade Conflicts in the USA, China, and India," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 14(2), pages 185-203, May.
    2. Hafezali Iqbal Hussain & Muhammad Haseeb & Manuela Tvaronavičienė & Leonardus W. W. Mihardjo & Kittisak Jermsittiparsert, 2020. "The Causal Connection of Natural Resources and Globalization with Energy Consumption in Top Asian Countries: Evidence from a Nonparametric Causality-in-Quantile Approach," Energies, MDPI, vol. 13(9), pages 1-18, May.

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    More about this item

    Keywords

    oil price; ruble rate; oil production volume; US dollar rate;
    All these keywords.

    JEL classification:

    • F37 - International Economics - - International Finance - - - International Finance Forecasting and Simulation: Models and Applications

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