Analysis of the factorial impact on the volatility of the national currency

The main macroeconomic indicators and financial indicators have a direct impact on the fluctuations of the national currency exchange rate. In this article, the authors conducted a factor analysis to determine the volatility of the ruble, focusing on the period from 2020 to 2024. The volatility of a national currency is a critical indicator for any economy, especially in times of global instability. The Russian ruble, like the currencies of many emerging markets, is subject to significant fluctuations, which can impact inflation, trade balance, investment attractiveness, and overall economic well-being. Russian banks have quickly developed their own payment solutions, which have successfully replaced foreign counterparts[11]. The relevance of this study lies in the need to understand the mechanisms of currency exchange rate formation in order to effectively manage currency risks, develop an adequate monetary policy, and ensure macroeconomic stability. In the context of geopolitical tensions, sanctions pressure, and fluctuations in commodity prices, the volatility of the ruble can have a significant negative impact on the country's economy. Factor analysis was chosen as the primary research method. This method allows for the identification of hidden relationships between a large number of variables and the grouping of these variables into several common factors that explain a significant portion of the variance in the original data. The use of factor analysis not only identifies the key factors influencing the volatility of the ruble but also assesses their relative significance. The results obtained during the study make it possible to objectively consider the stated issue [1] in the context of formulating recommendations for risk management, which arise as a result of market changes, which is of interest to both the state as a whole and business entities. It can be said that the study also has an applied significance for the development of state measures aimed at stabilizing the financial stability of the financial market.