No matter what reforms are carried out in Russia, for some reason they always end up with the fact that the state once again gets into the pocket of its citizens. After all, it is much easier than making money or making money. So the 1993 monetary reform in Russia, hiding behind the slogans of curbing inflation, once again confiscated small savings from the population.
Post-war reform
For those who survived the Patriotic War and tried to integrate into a rapidly changing reality, this was the fifth monetary reform in less than half a century. Most judged from the stories of the older generation about the post-war reform of 1947 as the seizure of large amounts of money on old outstanding bonds. The main purpose of the money exchange was to prepare for the abolition of the card system. New banknotes were issued, which were exchanged for old in a ratio of 1:10, deposits of up to 3 thousand rubles were exchanged 1: 1, from 3 to 10 thousand in a ratio of 3: 2, over 10 thousand - 2: 1. In general, the goals of the reform were achieved, the USSR was the first of the warring countries to abolish the card system, the economy developed with little inflation, population incomes began to grow.
Prelude
On the population of Russia, they trained two more times - in 1961 and 1991. In 1961, the ruble was denominated, “bad” money was exchanged for new money at a ratio of 10: 1. Prices and wages were proportionally reduced, however, the sediment still remained - a lot of money was exchanged for a little. It was announced to the population that the ruble contains 0.987412 grams of gold, although the state was not going to exchange anything for anyone. The goal of monetary reform was to establish proportions at a lower level between income and prices.
In 1991, the government preoccupied with the seizure of illegal proceeds and issued new banknotes of 50 and 100 rubles. To exchange money over 100 rubles, it was necessary to provide information about their origin. Most of the population would not have noticed this reform, the savings were low, but the forms of conducting the money exchange were simply gangster - they announced the exchange at 21:00 pm and gave three days for this. The reform objectives - to make the savings of the population work for the economy - could not be achieved, everyone knows the sad result.
A country on the brink of survival
After the collapse of the Soviet Union, Russia, as its successor, received a large load of economic and political problems associated with the creation of a new state. The government began economic reform with "shock therapy", price liberalization, high taxes and cuts in social spending. These measures planned to stabilize the financial situation, reduce the state budget deficit and create conditions for attracting foreign investment.
As a result, inflation reached 1000-1200%, prices rose 26 times (with the government’s plan 5-10 times), wages increased only 12 times, putting the majority of the population on the brink of survival. The state’s monopoly on foreign trade was canceled, which on the one hand allowed filling empty store shelves with imported goods, and on the other, almost all industry, unusual for competition, collapsed. Monetary emissions declined, prices rose, and the economy simply lacked money. By June 1992, the amount of mutual non-payments amounted to 2 trillion rubles. Money in 1992 depreciated faster than its issue. The government was forced to re-launch the printing press. According to some estimates, from July 1992 to January 1993, 4 times more money was printed than before in the economy.
Policy
The implementation of reforms was greatly complicated by the confrontation between the President and the Supreme Council, the Congress of People's Deputies. The government carried out liberal reform, ceased subsidizing enterprises, which caused a collapse in the economy and impoverishment of the population. This caused an increase in the strength of the opposition, and under their pressure they began again to issue loans to industrial enterprises and issue money supply. The confrontation between the two branches of government was resolved by holding a referendum on a vote of confidence in the President, who, unexpectedly for many, won. In March 1993, mutual debts rose to 4 trillion rubles, and the budget was getting worse. The government has again returned to a policy of containing emissions. And they began to think more and more about the reform and the introduction of banknotes in Russia.
The need for reform
To use the money of the state, which is not, of course, strange. Although only the Central Bank of Russia was able to issue rubles of the 1961-1991 model, state-owned banks of the former Soviet republics could issue ruble loans, which they actively used. As a result, the unsecured money supply put a huge burden on the Russian economy. By 1993, many republics had already issued their national currencies, and the Russian government was afraid of an uncontrolled inflow of Soviet-style banknotes.
The end of the ruble zone
The abolition of the use of Soviet-style banknotes, the separation of the monetary systems of Russia and other republics, which also continued to use the ruble in domestic money circulation, put an end to the ruble zone. In fact, Russia unilaterally left the ruble zone, and the ruble ceased to exist as a single means of payment in the post-Soviet space. The Russian government has lost the ability to influence cash ruble cash emissions and the economy of the countries of the ruble zone.
The non-cash ruble also ceased to exist as a means of payment among the CIS countries. This separation of monetary systems has led to complications in relations with the republics, as their currencies were pegged to the ruble. The Central Bank of Russia was forced to transfer part of the new banknotes to Kazakhstan and Belarus. When Russia proposed creating a new type of ruble zone, only Belarus agreed someday to hold talks on this.
goal
The goal of the 1993 monetary reform in Russia was to tame inflation and replace money of the 1961-1992 model with new banknotes , divide the monetary systems of Russia and other countries of the former Soviet Union, and stop the flow of money not provided with goods from other republics. In addition to Soviet money , the circulation of money issued by the Bank of Russia was also canceled. In the context of hyperinflation, means of payment were issued in large denominations and with a new design. For example, the banknote of 10 thousand rubles no longer had Soviet symbols, but the Russian flag appeared on the Kremlin tower, the inscriptions remained only in Russian, and on the reverse of the coins was the coat of arms of Russia, which went unchanged to 50 rubles in 1993. The exchange of funds, as usual, was confiscatory, as a number of restrictions were introduced.
Conditions
The Russian government used the Soviet experience in creating difficulties for the population, the reform began in the holiday season, the money had to be exchanged within two weeks - from July 26 to August 7. The initial limit for Russian citizens was set at 35 thousand rubles (approximately $ 35), a passport stamped on the exchange. The country began to panic, people could not break into the branches of Sberbank, which was responsible for the exchange. Later, the exchange amount increased to 100 thousand rubles, and the period was first extended until the end of August, and then until the end of the year, however, from October 1, only upon presentation of documents confirming the impossibility of making the exchange at an earlier date. Amounts over the established limit were deposited.
Banknotes of 10 thousand rubles of the 1992 model were exchanged without restrictions. And the coins went on until the 1998 reform. The design of the notes of 1992 and 1993 did not differ significantly, mainly in color, and the coin of 50 rubles in 1993 remained the same as 1992, only from bimetallic it became copper. Anyway, a lot of people lost their savings. Enterprises could exchange cash within the cash balances on the day the exchange began; the amount should not exceed certain limits and the amount of trading revenue as of July 25. It was also announced the abolition of the mythical gold content of the ruble.
Summary
The main result of the monetary reform in 1993 in Russia is the introduction of its own monetary unit and the construction of a monetary system. 24 billion banknotes were seized. The new ruble finally divided the monetary systems of the countries of the post-Soviet space and indirectly contributed to the strengthening of their national currencies. The separation of currencies allowed Russia to more effectively control the money supply. The result of the reform is the creation of its own monetary system. She could not improve monetary circulation or strengthen the national currency. Hyperinflation continued to increase, according to the results of 1995 it amounted to 834%, the budget deficit was increasing. The 1993 monetary reform in Russia generated a total distrust of the population in their own currency, the “dollarization” of the economy, which a year later led to a landslide collapse of the ruble, known as “Black Tuesday”.