The relationship between oil prices and exchange rate in Russia

This paper studies the relationship between oil price and the exchange rates in Russian Federation. There is a close interrelation between the currency rate of dollar to ruble and oil prices. The regression model has accurately shown this interrelation. The interrelation with a foreign policy factor - sanctions of the USA and the European Union is also revealed. There is a close interrelation between the currency rate of dollar to ruble and oil prices. The regression model has accurately shown this interrelation. Oil prices of the Brent oil is the dominating factor in a currency exchange rate formation mechanism of ruble, at least, in the long term. When world oil prices are stabilized and sanctions cancelled, currency fluctuations and uncertainty will be minimized. The findings of this paper may be used by foreign and domestic investors while taking decisions because all the shocks impact on the economy in short and long term. © 2016, Econjournals. All rights reserved.

Publisher
Econjournals
Number of issue
4
Language
English
Pages
721-726
Status
Published
Volume
6
Year
2016
Organizations
  • 1 Finance and Credit Department, Peoples’ Friendship University of Russia, UL. Miklukho-Maklaya 6, Moscow, 117198, Russian Federation
Keywords
Exchange rate; Interrelation with a foreign policy factor; Oil price
Date of creation
19.10.2018
Date of change
19.10.2018
Short link
https://repository.rudn.ru/en/records/article/record/4083/
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