In this article the trade-off between anti-inflation policy and policy aimed at limiting currency appreciation in Russia is analysed. A detailed overview of the Central Bank achievements in inflation restraining in 2003 as well as the analysis of the state budget role in the sterilisation process are given. A comprehensive study of trade-offs between inflation and rouble appreciation is provided. The authors analyse the influence of real rouble exchange rate on key sectors in mid-term, consider causes and consequences of "Dutch Disease" and examine effectiveness of its treatment by exchange rate policy. The authors come to a conclusion that the Bank of Russia would better give more attention to the inflation reduction policy while reducing its presence on the foreign exchange market and allow more rapid appreciation of the rouble.