Russian Currency in The Forex Exchange Market

The Russian ruble (RUB) is considered to be an exotic currency in the Forex market.

The Russian Federation is the world’s sixth largest economy.

Does Your Economy Run a Trade Surplus or a Trade Deficit?

The Russian Federation runs a trade surplus of $68.85 billion, giv­ing the country a ranking of 4 out of the 190 countries tracked by the CIA in The World Factbook.

According to the World Trade Organization (WTO), the Russian Federation exports $303.4 billion in goods and merchan­dise compared to only $41.2 billion in commercial services. The WTO breaks down those exports as follows:

Goods and Merchandise

• Agricultural products: 6.9 percent
• Fuels and mining products: 69.0 percent
• Manufactures: 21.1 percent

Commercial Services

• Transportation: 30.0 percent
• Travel: 22.8 percent
• Other commercial services: 47.2 percent

To Whom Does Your Economy Export?

The WTO ranks the following countries as the top destinations for exports from the Russian Federation:

• European Union: 45.9 percent
• China: 5.6 percent
• Turkey: 3.6 percent
• Ukraine: 3.4 percent
• Kazakhstan: 3.1 percent

What Does Your Economy Import?

The Russian Federation imports machinery, vehicles, pharmaceuti­cal products, plastic, semifinished metal products, meat, fruits and nuts, optical instruments, medical instruments, iron, and steel.

According to the WTO, the country imports $191.8 billion in goods and merchandise compared to only $59.4 billion in com­mercial services. The WTO breaks down those imports as follows:

Goods and Merchandise

• Agricultural products: 15.2 percent
• Fuels and mining products: 3.8 percent
• Manufactures: 79.8 percent

Commercial Services

• Transportation: 15.9 percent
• Travel: 35.0 percent
• Other commercial services: 49.1 percent

From Whom Does Your Economy Import?

The WTO ranks the following countries as the top sources of imports to the Russian Federation:

• European Union: 45.2 percent
• China: 14.2 percent
• Ukraine: 5.6 percent
• United States: 5.4 percent
• Japan: 4.5 percent

Do You Have an Attractive Government Debt Market?

The Russian Federation currently has a Moody’s rating of A2. It received this latest rating on May 24, 2006. This most recent rating was an upgrade from the Baal rating that the country had held previously. This is a positive sign for the country’s government debt market.

Do You Have an Attractive Equities Market?

The Russian Federation has an attractive, yet volatile, equities market. It is the seventh largest equities market in the world, with a total market value of $861.4 billion.

Tell Me About Your Central Bank

Under Article 75 of the Russian Constitution, the principal func­tion of the Bank of Russia is to protect the ruble and guarantee its stability.

The Central Bank of Russia has foreign currency reserves of $426,029 million and gold deposits of $35,788 million.

How Can I Trade You?

You can trade the Russian ruble using any of the following:

• Spot Forex
• Forex futures
• Exchange-traded funds (ETFs)