The currency system of the Russian Federation is an organized and interconnected set of relations relating to the functioning of foreign currencies and other currency values on the territory of Russia and in the country's foreign relations. Its organizer, in the person of its institutions, is the state, which allows you to regulate the circulation of foreign currencies and the rules of conduct involved in foreign exchange.
Having entered the IMF in 1992, Russia, thus, assumed obligations to integrate into the world economy; therefore, the currency system of the Russian Federation is being formed today on the basis of structural principles inherent in the world currency system.
The official monetary unit of the Russian Federation is the ruble, legal tender, obligatory for acceptance at its nominal value in Russia.
The status of the Russian national currency began to change significantly from the moment when in 1996 the Government and the Bank of Russia assumed obligations to remove restrictions on its convertibility in current operations and to ensure internal conversion and subsequent liberalization of procedures for attracting foreign capital
The recognition of the Russian ruble in settlements in the implementation of foreign economic activity as a currency value allows extending currency control to the area of payment and settlement relations between residents and non-residents when the national currency is the means of payment.
Officially, the ruble exchange rate is not tied to any currency basket or foreign currency. The exchange rate of the national Russian currency is floating, that is, it depends on the ratios that are formed on the currency exchanges in the country (primarily on the MICEX) between supply and demand. Only the Central Bank has the right to set official dollar-ruble rates on the basis of trading results on the MICEX. Rates of other currencies are determined on the basis of cross rates. Currently, therefore, the currency system of the Russian Federation is built on the basis of a floating rate, as required by the modern currency system.
Elements of the currency system
- The Russian national currency, which, since mid-1993, is the ruble.
- Foreign currency: the euro accounts for about 25%, while the US dollar is about 75%.
- The exchange rate, which since 2007 is floating.
- Convertibility, showing how possible the conversion of national to foreign currency. Since July 2006, the ruble is a full convertible currency.
- The foreign exchange market is a platform for the interaction of currencies. Currently, he is still in the process of becoming. The Russian foreign exchange market is de facto domestic. By nature, he is an exchange. As for the interbank trade sector, it has not fully recovered after the crisis.
- The existing system of international payments is inherited from the USSR. This is a single currency settlement model based on currency convertibility. Settlements are carried out mainly in foreign currencies.
- External debt and assets. Although payments were not always regular, most of the external debt has already been paid. Russia needs developing countries. Since the bulk of the debts are bad, the state today pursues a policy of writing them off.
- Balance of payments, which is the final economic indicator. It gives a complete picture of the movement of foreign currency funds, its calculation is carried out according to the IMF methodology. To date, a surplus has been recorded in both current and financial transactions.
- The management unit, which includes management institutions (for the Russian Federation - only federal), federal laws on currency legislation, and foreign exchange policy on the implementation of currency legislation. It includes: exchange rate and convertibility policies, debt management and foreign exchange reserves.
The currency system of the Russian Federation continues to improve, integrating more and more deeply into the world system.