Proceedings of the 5th International Conference on Economics, Management, Law and Education (EMLE 2019)

Study on the Possibility of Applying the Tax Policy of the Russian Federation to Influence the Dynamics of the Exchange Rate

Authors
Alexander Ishkhanov, Elena Linkevich
Corresponding Author
Alexander Ishkhanov
Available Online 7 January 2020.
DOI
https://doi.org/10.2991/aebmr.k.191225.010How to use a DOI?
Keywords
exchange rate, exchange rate policy, exchange rate regime, demand for currency, foreign exchange intervention, tax policy, tax instruments
Abstract

The article examines the Russian experience in the field of currency regulation and the instruments that affect the exchange rate of the Russian ruble in crisis conditions. It is justified that the dynamics of the Russian ruble exchange rate depends primarily on the influence of four factors: the state of the economy of the issuing country, state monetary and financial policies, price dynamics of international commodity markets, and instability of the global monetary and financial system. It was established that the Russian ruble exchange rate also depends on the volume of foreign currency purchases by the population, while a tendency for an increase in demand for foreign currency on the part of the population during the expectations of the devaluation of the national currency of the Russian Federation (RF) with a decrease in world oil prices was revealed. Based on an analysis of the currency policy of the Russian Federation, the authors come to the conclusion that curbing the weakening of the Russian ruble in the face of a decrease in the supply of foreign currency in the domestic market is carried out mainly through foreign exchange interventions and offer additional measures aimed at reducing demand on foreign currency through the introduction of tax instruments. Such measures will reduce the dependence of the ruble exchange rate on the volume of foreign currency inflows into the country, which will increase the efficiency of the Russian monetary policy and, as a consequence, the stability of the Russian economy to external adverse factors. In addition, six additional effects were revealed from the implementation of the proposed tax measures, which will strengthen the financial system of Russia. The proposed tax instruments can be applied in other countries, and the resulting increased demand for precious metals affects the global financial system up to its substantial transformation.

Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 5th International Conference on Economics, Management, Law and Education (EMLE 2019)
Series
Advances in Economics, Business and Management Research
Publication Date
7 January 2020
ISBN
978-94-6252-878-9
ISSN
2352-5428
DOI
https://doi.org/10.2991/aebmr.k.191225.010How to use a DOI?
Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Alexander Ishkhanov
AU  - Elena Linkevich
PY  - 2020
DA  - 2020/01/07
TI  - Study on the Possibility of Applying the Tax Policy of the Russian Federation to Influence the Dynamics of the Exchange Rate
BT  - Proceedings of the 5th International Conference on Economics, Management, Law and Education (EMLE 2019)
PB  - Atlantis Press
SP  - 49
EP  - 55
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.191225.010
DO  - https://doi.org/10.2991/aebmr.k.191225.010
ID  - Ishkhanov2020
ER  -