Bodies that carry out currency regulation in the Russian Federation

Currency regulation in the Russian Federation is a huge set of legal measures carried out by state bodies authorized to do this to achieve such goals as:

• Regulation of the exchange rate of the ruble and maintaining the currency balance;
• Protection of property rights of both residents and non-residents of the state against currency values;
• Ensuring the established order and rules for the purchase and sale of currency values in the domestic foreign exchange market ;
• Ordering of international settlements;
• Establishment of an adequate regime for the interaction of the state with the world currency market ;
• Ensuring stable and efficient work of the bodies of currency regulation.

Currency regulation in the Russian Federation is designed to implement the Central Bank (CB) and the Government of the state. These bodies in the performance of their duties are guided by the norms of the Law "On Currency Regulation and Currency Control" of 10.12.2003 N 173-FZ.

The Central Bank of Russia

Guided by the current legislation, the Central Bank implements currency regulation in the Russian Federation as follows:

• Publishes normative acts that define the procedure and rules for the implementation of any currency transactions, the rules for issuing the appropriate licenses, the form of accounting and reporting. These normative acts are mandatory for compliance in the territory of the state by all its residents and non-residents;
• Exercises control over all subjects of currency relations.

Despite the fact that the Central Bank provides currency regulation and control, it is also an active market operator. Independently carrying out currency operations, the Central Bank of the Russian Federation makes profit.

Russian Government

Guided by the Constitution, federal laws and multiple decrees, the Government of the country provides for currency regulation in the Russian Federation as follows:

• Publishes normative acts that define the procedure for performing transactions with any precious stones and metals, the rules for issuing the corresponding licenses and the stages of the formation of state. Fund of precious metals and stones. In addition, acts of the Government regulate the procedure for spending currency funds for their financing and determine the rules for granting residents a deferment of payments for exports or imports for a period of more than ninety days;
• Ensures the functioning at the state level of a single policy in the sphere of precious metals and stones circulation.

Certain powers of the Government of the Russian Federation have an indirect effect on the area of currency relations. For example, in order to protect the domestic market, the Government has the right to impose temporary quantitative restrictions on exports or imports.

Other bodies providing for currency regulation

The Central Bank and the Government of the Russian Federation are the main bodies of currency regulation, but not the only ones. Besides these, regulatory functions in the sphere of currency relations are carried out by:

• The Federal Assembly, which establishes the procedure for the formation of state. Foreign exchange reserves and issues federal laws that cover all issues of the sphere of currency regulation;
• The President, who determines the rules for the export and import of precious metals, and also decides on the issues of granting to residents benefits for compulsory sale of the currency derived from export;
• The Ministry of Finance, which provides a single currency policy of the Russian Federation and, with the participation of the Central Bank, regulates the precious metals and stones market;
• The State Customs Committee, which, with the participation of the Central Bank of the Russian Federation, establishes the order of export, as well as the import of any currency valuables by residents and non-residents of the state.

Each of the listed bodies provides for currency regulation strictly within the limits of their powers, being guided by the relevant legislative acts. All of them use various methods of currency regulation - direct (currency restrictions) or indirect (currency interventions, exchange rate regime, devaluation or revaluation). Their joint work is called upon to solve a significant task for the state - the creation of an effective mechanism for the circulation of currency values for the development of the Russian economy.