Reuters with a piece on a research report from analysts at the Central Bank of the Russian Federation (Bank of Russia)
- Artificially depressing the rouble would create competitive advantages
- But at the expense of people's living standards
- A weaker rouble would erode imports which play an important role in domestic capital investment
The import of this is in Reuters comment on the report:
- the research comes at a time when some government officials are expressing concern about the strength of the rouble
Otherwise, such statements from the analsysts are basic first-year international economics material. But ... it can come in handy when authorities want to justify moving policy one way or another. Something to be alert to.
I'll get a link to the Reuters piece ASAP ... here
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Also .... the Bank is expected to buy foreign currency for reserves in months ahead. This is not guaranteed but it is expected by maybe around half of surveyed analysts. Doing so would weigh on rouble appreciation to an extent.
