Currency regulation over the past ten years has undergone radical changes caused by the abolition of the state currency monopoly. The state currency monopoly was the main aspect of monetary policy throughout the entire existence of the USSR. It meant that the country was the sole owner of foreign currency, which was based in the center and distributed according to the currency plan. Only the state could carry out operations with currency values and manage the country's gold and currency resources.
The abolition of the state monopoly on foreign trade, the liberalization of foreign trade activities has led to an increase in the number of legal entities and individuals in the country who had to regularly deal with currency legislation. Therefore, the creation of the foreign exchange domestic Russian market has made the monetary regulation stable. Legal currency regulation is carried out at two levels: individual and regulatory. Legal regulation of currencies is the development and approval of legal norms, taking into account public monetary relations. As for the individual legal settlement, it is nothing more than the application of legal norms to each individual case, which entails the change, termination and emergence of new currency relations.
The Russian law “On Currency Regulation and Currency Control” defines the fundamentals of organization and currency regulation in the country, while individual issues related to currency regulation are determined by other legislative acts. Legal norms that are responsible for the procedure for conducting foreign exchange transactions are divided into two main functions: control and regulatory. At the same time, the regulatory function of the legislation determines the rights and obligations of persons who participate in foreign exchange transactions.
By this is meant:
- operations determining the transfer of ownership of currency values;
- shipment, import and export of currency values from Russia;
- international money transfers.
The main purpose of currency control is to ensure currency legislation when conducting currency transactions.
The most common today are foreign trade relations, while foreign exchange regulation of foreign trade provides:
- protection of economic sovereignty;
- stimulating the growth of the national economy;
- ensuring economic security;
- ensuring the effective integration of the Russian economy into the global economy.
Currency regulation of foreign economic activity is one of the most important objects of currency regulation. At the same time, currency settlements of residents are made through foreign currency accounts with special banks. Depending on their purpose, currency accounts can be of three types. The resident’s foreign currency earnings from exports are credited to the transit account, foreign currency funds are credited to the special transit account during import, and general-purpose funds are transferred to the current account. Each of these accounts has its own currency regime, that is, there are certain rules that allow the currency regulation of the Central Bank. At the same time, foreign currency accounts of non-residents can be both in foreign and in domestic banks, this fact does not change anything. Settlements with non-residents can be made through their ruble accounts, guided by the regimes of convertible and non-convertible types of accounts.
Currency regulation of Russia is a powerful mechanism to bring the country's economy to a new level and, as a result, improve the welfare of Russian citizens.