Introduction As business becomes more increasingly global, it's very important that countries pay close attention to foreign exchange exposures in order to design ways of implementing appropriate strategies to properly deal with these types of exposures. In this paper I will attempt to forecast the degree of transaction, translation and the economic exposure for Russia. I will follow that by forecasting the degree of these specific areas and analyzing the various techniques used to mitigate these
Introduction Affected by the Southeast Asian financial crisis, Russia suffered from the financial crisis in May 1998 followed the crisis in October 1997. The crisis initially reflected on currency market and security market. As a result, foreign capital about one-third of the total amount of Russian national debts faced large-scale capital flight; exchange rate depreciated and stock market suffered a large setback; re-lending interest rate once reached up to 150%. Stock market, bond market and currency
Russia, officially recognized as the Russian Federation, is the largest country in the world, spanning over 17 million square kilometers of the globe. It is the 9th most populous country in the world, with a population of nearly 144 million people. Nearly 200 national and/or ethnic groups are represented in Russia, but 77.7% of the population identifies as Russian. The Russia we know today originates in the 12th century when the Principality of Muscovy was founded, and it grew to become the third
The International Monetary Fund or IMF’s primary mission is “to ensure the stability of the international monetary system” (www.imf.org). With 189 members within the IMF, countries worldwide strive to ensure financial stability and monetary cooperation is maintained. Recently, due to civil war, political unrest, and government corruption, Ukraine has struggled to maintain economic stability. As result, the IMF has provided much needed assistance to Ukraine to help the country regain stability. By
parties registered with Russia’s Ministry of Justice as of 2014, but only four are represented in the national legislature. (1) A Just Russia represented by Sergey Mironov, (2) Communist Party of the Russian Federation or CPRF represented by Gennadiy Zyuganov, (3) Liberal Democratic Party of Russia or LDPR represented by Vladimir Zhirinovskiy, and (4) United Russia represented by Dmitriy Medvedev (Unlisted). There ten major political pressure groups and leaders, these are similar to the various
fall in oil prices put the ruble under a drastic downward trend. Russia at that point in time was heavily dependent on capital inflows which was eroded due to the external shocks e.g Asian financial crisis etc country
Economic system “Economic system is that it consists of those situations which a given people or nation has nations has chosen or accepted as the means through which resources are utilized for the satisfaction of human wants.” (studylecturenotes.com, 2016) Economic system allows countries to follow procedure to produce goods using resources available in the countries. It allows the countries to know how much and for whom to produce. There are different types of economic systems in different countries
Undoubtedly, Russia is the largest country in the world, spanning an area of 17.1 million square kilometers (Paranyushkin). Geographically, Russia is astounding in it’s vast, treeless plains that span for hundreds of miles known as the Steppes (). The region of Siberia, which supports one of the harshest climates in the world, dominates most of Northern Asia and extends the country’s borders further past Europe. This marks it as an influential actor in the international community. Currently, Russia’s
from communism to capitalism, the Russian economy experienced more trouble than it had anticipated. This became not only a fiscal issue but also became very social and political. The people of Russia experienced exceptional hardships. This paper will illustrate the major shocks to the Russian foreign exchange reserves. These shocks include the Asian Financial Crisis of 1997 and the decline in demand and price for Russia’s top exports. The role played by foreign investors in the crisis and what effects
flying oil price benefited oil producing countries past 5 years until recent petroleum price plunge. Russian was the one of beneficiaries who has enjoyed the high oil price. The Russian economy stabilized without much of restructuring the economic system or economic growth by developing new industry. High oil price created budget surpluses and keep Russian economy afloat; However, increase of the US oil production, oil price war between Saudi and Kuwait, debilitating European economy, and decreasing