Choice of substitution currency in Russia: how to explain the dollar's dominance?

Arbeitspapier

The analysis of external economic relations of Russia reveals a paradox: while Europe is the main trade and direct investment partner of Russia, this is far from being the case concerning its currency s role in Russia's financial activities.The dollar is much preferred by economic agents for financial operations.This paper proposes a disaggregated approach to this issue by separating the means of exchange and store of value components of the use of substitution currencies.The influence of three main factors (inertial component, real trade relations and exchange rate fluctuations) on the relative demand for the euro by Russian economic agents is tested for the period 1999-2004.Finally we suggest a theoretical interpretation of the results based on the conventions theory approach.

Angaben zum Objekt

• ISBN: 952-462-796-5
• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: BOFIT Discussion Papers ; No. 15/2005

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Monetary Policy ; Demand for Money ; Foreign Exchange ; Open Economy Macroeconomics ; Financial Institutions and Services: General
• Thema: dollarisation ; euroisation ; transition ; Russia ; currency substitution ; asset substitution ; network externalities ; hysteresis ; conventions

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Dorbec, Anna
• Ereignis: Veröffentlichung
• (wer): Bank of Finland, Institute for Economies in Transition (BOFIT)
• (wo): Helsinki
• (wann): 2005

Weitere Informationen

• Handle: http://hdl.handle.net/10419/212567
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ