Events in Ukraine have been one factor behind the fall in the Russian ruble, but domestic problems have played a role too. The central bank (CBR) has already voiced its concern that exchange rate weakness could fuel inflation, leading some to argue that it will step in to prevent the ruble falling beyond a certain threshold. But we think a sharp and sudden fall in the currency (as opposed to a move beyond a specific level) is more likely to elicit a policy response. If the CBR decides to act, we think it has three options.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services