The monetary system of the Russian Federation and its elements

The monetary system of the Russian Federation is an organized and interrelated set of relations relating to the functioning of foreign currencies and other currency values on the territory of Russia and in the foreign relations of the country. Its organizer, in the person of its institutions, is the state, which makes it possible to regulate the circulation of foreign currencies and the rules of behavior of those participating in foreign exchange.

Having joined the IMF in 1992, Russia, thus, assumed the obligations to integrate into the world economy, so the currency system of the Russian Federation is formed today on the basis of the structural principles inherent in the world monetary system.

The official currency of the Russian Federation is the ruble, a legitimate means of payment, obligatory for acceptance at its face value in the territory of 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 took upon themselves the obligation to remove restrictions on its convertibility in current operations and ensure internal conversion and the subsequent liberalization of procedures for attracting foreign capital

Recognition of the Russian ruble in the calculation of foreign exchange value in the performance of foreign economic activity allows the spread of 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 exchange rate of the ruble to any currency basket or foreign currency is not tied. The exchange rate of the Russian national 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 establish official dollar exchange rates against the ruble based on the results of trading on the MICEX. The rates of other currencies are determined on the basis of cross-rates. At present, thus, 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 monetary system

• The Russian national currency, which, beginning in mid-1993, is the ruble.
• Foreign currency: the euro accounts for about 25%, while the US dollar - about 75%.
• The exchange rate, which since 2007 - is floating.
• Convertibility, showing how possible the transition of the national to foreign currency. Starting from July 2006, the ruble is a full convertible currency.
• The foreign exchange market is a platform for interaction of currencies. Currently, he is still in the process of becoming. The Russian foreign exchange market is de facto internal. By nature, it is stock exchange. As for the sector of inter-bank trade, until it finally recovered after the crisis.
• The existing system of international payments is inherited from the USSR. This is a single currency model of settlements, built on the convertibility of currencies. Settlements are made primarily in foreign currencies.
• External debt and assets. Although payments have not always been regular, but most of the external debts have already been paid. Russia needs the developing countries. Since most of the debts are hopeless, the state is now pursuing a policy of writing off them.
• The balance of payments, which is the final economic indicator. It gives a complete picture of the movement of hard currency, its calculation is carried out according to the methodology of the IMF. To date, there has been a positive balance for both current and financial transactions.
• The management unit, which includes management institutions (for the Russian Federation - only federal ones), federal laws on currency legislation, foreign exchange policy for the implementation of currency legislation. It includes: exchange rate policy and convertibility, debt management and foreign exchange reserves.

The monetary system of the Russian Federation continues to improve, integrating ever deeper into the world system.