The Influence of Oil and Gas Exports on Russia's Monetary Policy

This article examines the implementation of monetary policy in Russia in the context of significant revenues from commodity exports. It argues that a strong balance of payments forces the Central Bank to choose between an appreciating ruble and inflation. The Russian government has at its disposal a powerful tool that allows it to simultaneously prevent ruble appreciation and contain inflation. These two objectives are achieved by saving a portion of oil and gas revenues in reserve funds when the market is strong. Such a policy lays the foundation for macroeconomic stability and enhances the attractiveness of the Russian economy for investors.