BOFIT Viikkokatsaus / BOFIT Weekly Review 2016/24
Due to higher inflation rate in Russia than in most of its trading partners, the ruble has strengthened even more in real than nominal terms, although its value is still far below pre-collapse levels. The ruble’s real effective (trade-weighted) exchange rate in May was 22 % below end-2013.
Many Russian firms are satisfied with the ruble’s strengthening. A recent survey committed by the CBR found that over 60 % of responding firms want a stronger ruble because it would support their investment in imported machinery and equipment and reduce production costs as imported inputs would become cheaper. Firms in nearly all branches favoured ruble appreciation regardless of whether they serve the domestic market or are involved in exports.
Nominal and real effective ruble exchange rates
Sources: Central Bank of Russia, BOFIT.