Russian Ruble to be Revalued

Dr. Bill Belew

Issue II - June 18, 2006

Introduction by Mr. Stolyarov: Central governmental controls over currency exchange rates are not only peculiar to China, writes Dr. Bill Belew. They exist in Russia as well, and the Russian government does not yet wish for the market to determine the ruble's exchange rates. In both countries, unfortunate governmental edicts are imposed to overrule the wishes of individuals.

It seems like no one wants to leave the Chinese alone when it comes to revaluing the yuan.

Here is some news that I am sure the Chinese would like to see spread all over the pages.

The Russians say their economy is not ready to introduce the idea of a 'floating ruble' yet because it involves:

1. Economic risks

2. Reevaluation (sounds like revaluation) of the state's participation in the economy.

Russia's Federal Financial Markets Service Head, Oleg Vyugin, said, "we're not ready."

"People think the ruble rate is undervalued," he said. That statement could be put in any economic commentary about the Chinese yuan as well.

"No one knows the 'fair' market rate as only the market can determine that when the Central Bank did not interfere with trade," he said.

Yep, sounds like we are talking about China again.

Question: When should the market be allowed to determine what is fair?

When should a government, Russia, China, or otherwise, stop interfering?

What do you think?

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Dr. Bill Belew is a former Intelligence Officer for a Destroyer Squadron. He lived 20 years in Japan, where he started a language school for Japanese ECS. Dr. Belew teaches classes for a vocational school and online for a national university.

See Dr. Belew's blog, PanAsianBiz, for news and discussions about business and current events in Russia and Asia. See ZhongHuaRising for Dr. Belew's reports on business in China, RisingSunofNihon on business in Japan, and TheBizofKnowledge on business education.

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