Russian FX regime change ties rates closer to Europe: Bank of Finland
A paper published by the Bank of Finland in June examines the impact on domestic interest rates and sovereign risk dynamics of the Bank of Russia's 2005 shift from single-currency to bi-currency basket targeting.
The author, Vladimir Sokolov, considers insulating properties of Russian basket targeting policies during the recent global liquidity crisis. He argues the policy shift disconnected domestic interest rates from US dollar-denominated interest rates, replacing them with a growing positive
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