... Influence the Central Bank's Key Rate? The key rate of the Central Bank (CB) is a vital tool of monetary policy, used to regulate a country's economy. Changes in the key rate can slow inflation, stimulate economic growth, or even impact the national currency exchange rate. But what prompts the Central Bank to raise or lower this rate? Let's explore the main factors that influence the Central Bank's key rate. 1. Inflation Level Inflation is the primary indicator that the Central Bank focuses on when setting the key ...

... brokers or funds) provides access to larger global economies. For example, the historical average yield of the S&P 500 (USA) is approximately 10% per annum (in dollars) over the long term. The advantage is broader sector diversification. The downside is currency risk: fluctuations in the exchange rate of the dollar/euro against the ruble can either enhance or diminish ruble returns. In recent years, the depreciation of the ruble (or dollar appreciation) has boosted yields in rubles from foreign stocks. Over a 1–3 year horizon, it is important ...

... interest rate can either be fixed, predetermined in advance, or variable. In the latter case, the issuer announces the future rate until a specified date. There are also floating coupons, the payment of which can vary based on different factors, such as: currency exchange rate; inflation; Central Bank rate; RUONIA rate. Among professional investors, bonds with a fixed coupon rate are the most sought after. This option allows for accurate forecasting of future income. Advantages of Bonds According to Sergey Tereshkin, currency ...

... this impact the economy and the population — we analyze in this article. 2024 Year-End Summary: Ruble Exchange Rate Dynamics The ruble weakened amidst a range of internal and external factors. According to the Central Bank of Russia, the national currency ended the year with the following indicators: US Dollar Exchange Rate: +13.4% (ruble depreciation). Euro Exchange Rate: +7%. Chinese Yuan Exchange Rate: +6.8%. Main Causes of Ruble Depreciation Geopolitical Factors The introduction of new US sanctions against Russia in November 2024 dealt a serious blow to the economy....

... ruble may face volatility; however, long-term prospects remain relatively stable. In the context of global economic uncertainty and internal challenges, the Russian economy will continue to adapt, allowing it to avoid sharp declines in the national currency's exchange rate. Russian investors should consider potential fluctuations in the ruble's exchange rate and take measures to diversify their assets in order to minimize the impact of currency risks. After Donald Trump's inauguration, the Russian stock market may ...