Russian Rubles Because of Sanctions Over Their Involvement in Ukraine in 2014,the

question 14

Essay

Russian Rubles
Because of sanctions over their involvement in Ukraine in 2014,the Bank of Russia has raised its benchmark interest rate from 8% to 9.5%.What affect does this have on the exchange rate for the Russian Rubble versus the Euro?

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Definitions:

Foreign Exchange

The conversion or trading of one currency into another currency.

Triangle Arbitrage

A risk-free profit that arises from discrepancies between three foreign currencies in the foreign exchange market.

Profit

The financial gain realized when the revenue from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

British Pounds

The official currency of the United Kingdom, also known as sterling, symbolized by £.