Exchange Rates in the FSU

OECD Short Term Indicators: Transition Economies

The above table gives exchange rates in the FSU relative to the US dollar. Dividing any two exchange rates in a column gives the exchange rate of the two currencies relative to each other. This table shows that currencies in the FSU have experienced sharp changes with respect to each other and with respect to the U.S. dollar. Moreover, since other major currencies changed relatively little with respect to the U.S. dollar, FSU currencies have also been volatile relative to other major currencies.

Exchange rate volatility adds additional uncertainty to enterprise financial planning. Where international markets determine prices, the local currency cost and value of any inputs and outputs fluctuates with exchange rate volatility. Moreover, alternative currencies are often held in countries, like those in the FSU, with high domestic inflation rates. Exchange rate volatility, in conjunction with domestic inflation, makes the future real value of alternative currency assets much harder to anticipate.

Enterprise Restructuring in the FSU