Exchange Rate Policy in Context of Financial Markets’ Instability

Financial crisis in Europe and USA originates a set of questions linked to the effectiveness of solution for its impacts. Concerning this fact the growing dynamics of five big economies, so called group as BRICS – Brazil, Russia, India, China and South Africa, comes to the front of economists‘ interest. The article concentrates on the scope on exchange rate policy of Russia in period 1999 – 2011 and its impact for internal and external economic equilibrium in context of financial markets’ instability. The subject of interest is mostly foreign currency market. The paper reflects goals and instruments of exchange rate policy, analyzes development of bilateral and effective exchange rate of ruble and is interested in an impact of exchange rate’s volatility on inflation rate dynamics and real economic growth and other macroeconomic variables. The authors believe the exchange rate policy of Russia in observed period 1999 – 2011 was based on exchange rate framework with relatively higher flexibility. The chosen exchange rate policy influenced the dynamics of internal and external equilibrium. So they find out the presence of high share of spot operations on foreign exchange market what is not typical for flexible exchange rate systems.