The Relationship between Oil Prices and Exchange Rate in Russia

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Abstract

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.Keywords:  oil price, exchange rate, interrelation with a foreign policy factorJEL Classifications: C58, F31, Q35

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Author Biographies

Tatiana K. Blokhina, Russian Peoples' Friendship University

Finance and creditDoctor of Economics, Professor 

Oksana A. Karpenko, Russian Peoples' Friendship University

Finance and creditCandidate of Economics, Associate Professor 

Andrey V. Guirinskiy, Russian Peoples' Friendship University

Finance and creditCandidate of Economics, Associate Professor

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Published

2016-10-21

How to Cite

Blokhina, T. K., Karpenko, O. A., & Guirinskiy, A. V. (2016). The Relationship between Oil Prices and Exchange Rate in Russia. International Journal of Energy Economics and Policy, 6(4), 721–726. Retrieved from https://econjournals.com.tr/index.php/ijeep/article/view/2897

Issue

Vol. 6 No. 4 (2016)

Section

Articles

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