IDEAS home Printed from https://ideas.repec.org/p/wii/rusmon/2.html
   My bibliography  Save this paper

Fighting Depreciation and Inflationary Pressures

Author

Listed:
  • Vasily Astrov

    (The Vienna Institute for International Economic Studies, wiiw)

Abstract

The Russian authorities have been battling strong depreciation pressures, with the rouble having lost around 30% of its value since early 2023 (and inflationary pressures having risen strongly). The main reason for this is the declining supply of foreign exchange from foreign trade transactions, due to (i) a steady rise in the share of export contracts denominated in roubles, and (ii) the declining share of export earnings in foreign currency converted into roubles. To address the latter problem, on 16 October the authorities imposed a surrender requirement for export proceeds, which has proved highly effective at stabilising the exchange rate. However, despite this and a sharp rise in the policy rate of 7.5 pp in total since June, inflation has continued to accelerate, reflecting the ongoing expansionary fiscal stance, but also the lengthy nature of some monetary transmission mechanisms.

Suggested Citation

  • Vasily Astrov, 2024. "Fighting Depreciation and Inflationary Pressures," Russia Monitor 2, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:rusmon:2
    as

    Download full text from publisher

    File URL: https://wiiw.ac.at/fighting-depreciation-and-inflationary-pressures-dlp-6733.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Vasily Astrov & Artem Kochnev & Vincent Stamer & Feodora Teti, 2024. "The Russian Economy Amidst the War and Sanctions," Russia Monitor 1, The Vienna Institute for International Economic Studies, wiiw.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.

      More about this item

      Keywords

      surrender requirement; exchange rate; inflation; credit growth;
      All these keywords.

      JEL classification:

      • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
      • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
      • F31 - International Economics - - International Finance - - - Foreign Exchange
      • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements

      NEP fields

      This paper has been announced in the following NEP Reports:

      Statistics

      Access and download statistics

      Corrections

      All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wii:rusmon:2. See general information about how to correct material in RePEc.

      If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

      If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

      If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

      For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Customer service (email available below). General contact details of provider: https://edirc.repec.org/data/wiiwwat.html .

      Please note that corrections may take a couple of weeks to filter through the various RePEc services.

      IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.