Monetary System of the Russian Federation

Monetary system - the type of monetary device in the country, which is fixed by law and provides for the unity of various elements of circulation of money.

The monetary system establishes the currency of the currency, the monetary unit, the order of coinage, the order of circulation of money.

The basis of the system is a noble metal fulfilling the function of a universal equivalent. Monetary metal is determined by the conditions of the historical era. Since the beginning of the twentieth century, in the capitalist countries, it has become gold instead of silver.

National monetary systems began to take shape approximately from the 16th to 17th centuries. Together with the assertion of capitalism, centralized states and the formation of national markets.

The monetary system of any developed country includes such elements as a monetary unit, a certain type or type of money, the scale of prices, the emission system and the state machinery for regulating the circulation of money.

Monetary unit - the amount of precious metal, taken for the scale of prices. The name of a monetary unit is determined by the state. The scale of prices refers to the expression of the value of a commodity through a certain weight content of a precious metal in a monetary unit.

The types of money that act as legal official means of payment are credit money and banknotes, coins and paper money.

Under the emission system is understood the order of issuance and subsequent circulation of banknotes, established by law. The issue is carried out by the central bank and the treasury.

The monetary system is characterized by features common to all developed countries. This is the abolition of the official gold content in monetary units (demonetization of gold); Transition to credit money; Preservation in circulation along with credit paper money; Preponderance of non-cash money in monetary circulation; Issue into circulation of banknotes in the order of crediting the state, economy and under the growth of gold and currency resources; Strengthening the state regulation of circulation of money.

The monetary system can be represented by one of its two types. The first - a system of metal circulation, based on real money (metal of gold or silver), at which the circulating banknotes can be exchanged for real money. The second - a system of paper and credit circulation, when real money is replaced by signs of value, while in circulation there are only paper and credit means of circulation and payment.

The modern monetary system of the Russian Federation began to form after the collapse of the Union. Today, the monetary system and monetary circulation are functioning according to the law on the Central Bank dated 12.04.1995, which determined its legal basis.

Monetary unit of the Russian Federation (currency) is the ruble. The introduction of other units of money is prohibited by law. The law does not require a correlation between ruble and gold.

The exchange rate of the ruble against the currencies of developed countries is set by the Central Bank of the Russian Federation and is officially published. This is necessary to maintain normal conditions for the country's economic activity.

Types of money that are valid in the Russian Federation are banknotes and metal coins. They are provided with assets of the Central Bank, which include gold reserves, securities, as well as reserves of credit institutions.

The central bank approves samples of banknotes. The release of new money is reported in the media.

In the RF there are cash money (and coins and banknotes) and non-cash (funds in the accounts of credit institutions).

Since the ruble is not related to gold, there is no fixed price scale in the Russian Federation. The state officially assigns the scale of the ruble's prices.

The central bank uses the following tools to regulate the economy with the help of monetary policy: discount policy ( discount rate of interest), reserve norms of credit institutions, open market operations, regulation of standards for credit institutions,

Issue of new money occurs on the basis of issuance permission, which is issued by the Board of the Central Bank within the amount established by the Government of the Russian Federation.