Question

You are wanting to open a Papa John's Pizza restaurant in Russia. What is the Monetary Environment? Back ground on currency system, currency risk, history of currency manipulation, independence of Central Bank. Write two to three paragraphs to give your business partner information on what is mentioned above.

Answer 1

In Russia,The monetary policy is a part of Russian economic development policy.It ensures the price stability,that is sustainably low inflation.This policy aimed at the growing Russian citizen's welfare. All monetary policy objectives must be achieved ,not just reduced the inflation targeting.The bank of Russia maintain inflation close to the target of 4 percent.Bank of russia using different policy rules and reacts to changes in inflation,the output gap and exchange rate in a consistent and predictable manner.

The currency of the Russia is Ruble.Russian ruble is the monetary unit of Russian federation.The monetary circulation of ruble, there are bills for 10,50,100,500,1,000 and 5,000 rubles and coins for 1,2,5,10,50 kopecks. Financial crisis in Russia was a number of process.Falling prices of oil and metals caused a fall in Foreign exchange rate.But revenew growth rate in recent years led to an increse in imports and so the currency outflows are increasing.In Russia beween 1991 and 2001 The russian ruble value lost above 90 percentof its value against the dollar.Russia exchange rate performance and arguments that have been proposed manipulation by small number of large investor.

Independence of Central bank in Russia, In 2002 after year president Putin signed amentment to the law on central bank giving a National banking council greater contro over Central bank activities