The dual currency basket is a conditional indicator that serves as a benchmark for the Central Bank of the Russian Federation in carrying out exchange rate policy. Determines, in a certain proportion, the ratio of the ruble to the dollar and the euro.
Dual currency basket
The currency basket is a set of currencies, the indicator is calculated in order to determine the exchange rate of the national currency. There is a dual-currency (consists of two monetary units) and multicurrency (contains several currencies) basket.
The value of a monetary unit is determined by its specific weight in the basket. The share of the currency is determined by economic criteria individually in each specific case, for example, based on their share in the gross product of countries. The dual-currency basket may be revised periodically based on changes in the external economic environment.
In Russia, a bi-currency basket was introduced in 2005, before that the ruble was guided only by the dollar. Its purpose was to determine the exchange rate of the ruble against the dollar and the euro, and at that time it consisted of 0.1 euros and 0.9 dollars (by August 2005, the euro / dollar ratio had dropped to 0.35-0.65). In 2007, this ratio was revised towards an increase in the share of the euro - today the bi-currency basket includes 0.45 euros and 0.55 dollars.
The main purpose of the bi-currency basket is to use the average indicator of the value of currencies in calculations and to exclude the influence of factors of fluctuations in the exchange rates of the euro against the dollar. The dual currency basket helps to balance the ruble exchange rate, curb inflation and prevent the ruble from appreciably appreciating.
It is calculated as follows: (0.45 * euro rate) + (0.55 * dollar rate) = the value of the basket in rubles. For example, the dollar exchange rate is 35 rubles, the euro - 49 rubles. Thus, the bi-currency basket = (0.45 * 49) + (0.55 * 35) = 22.05 + 19.25 = 41.3 rubles.
The minimum level of the bi-currency basket was recorded on August 5, 2008 and amounted to 29.27 rubles. The maximum value of the value of the dual-currency basket is 43.08 rubles. was recorded on March 18, 2014, later the ruble exchange rate began to strengthen.
Dual currency corridor
The Central Bank does not establish an equilibrium value for the bi-currency basket, but allows it to change within an admissible fluctuation band. Since 2011, the bi-currency basket has also been used as an indicator from which the currency band or the maximum deviation of the national currency rate is calculated. When the value of the bi-currency basket is at the borders of the corridor, the Central Bank takes various measures to level the exchange rate - for example, buying, selling foreign currency or issuing the ruble.
Until 2008, the Central Bank intervened in trading in exceptional cases, either with increased demand for foreign currency and the inappropriateness of a strong strengthening of the ruble, or, on the contrary, with an increase in offers for foreign currency and the need to prevent a sharp depreciation of the ruble.
Accordingly, the Central Bank of the Russian Federation either supported the ruble by buying foreign currency or sold rubles by purchasing reserve currency. Since 2008, there have also been regular interventions by the Central Bank within the corridor.
Initially, the current basket moved within the corridor by plus or minus 10 kopecks. But against the background of the financial and economic crisis and fluctuations in the ruble exchange rate, by 2009 the range of fluctuations in the bi-currency basket was 3 rubles, and by 2011 - 5 rubles. As of April 10, 2014, the boundaries of the dual-currency corridor were 36.30-43.30 rubles. Thus, the range of permissible fluctuations is 7 rubles. Due to the sharp weakening of the ruble, in February 2014 the Central Bank shifted the boundaries of the corridor 17 times, and 8 more times in March, which became a record figure.
