Currency regulation in the Russian Federation is a huge complex of legal measures carried out by authorized state bodies to achieve such goals as:
- regulation of the ruble exchange rate and maintaining the currency balance;
- protection of property rights, both residents and non-residents of the state on currency values;
- ensuring the established procedure and rules for the purchase and sale of currency values in the domestic foreign exchange market ;
- streamlining international payments;
- the establishment of an adequate mode of interaction between the state and the world currency market ;
- ensuring stable and efficient work of currency regulation bodies.
Currency regulation in the Russian Federation are called upon to be carried out by the Central Bank (CB) and the Government of the state. When fulfilling their duties, these bodies are guided by the norms of the law “On Currency Regulation and Currency Control” dated 10.12.2003 N 173-.
Central Bank of Russia
Guided by the current legislation, the Central Bank carries out currency regulation in the Russian Federation as follows:
- issues normative acts that determine the procedure and rules for the implementation of any currency transactions, the rules for the issuance of relevant licenses, forms of accounting and reporting. These regulations are binding on 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. By independently carrying out foreign exchange operations, the Central Bank of the Russian Federation makes a profit.
Russian Government
Guided by the Constitution, federal laws and multiple decrees of the President, the Government of the country provides currency regulation in the Russian Federation as follows:
- publishes regulations that determine the procedure for transactions with any precious stones and metals, the rules for issuing relevant licenses and the stages of formation of state. fund of precious metals and stones. In addition, Government acts regulate the procedure for spending foreign currency funds to finance them and determine the rules for granting residents a deferral of payments for exports or imports for a period exceeding ninety days;
- ensures the functioning at the state level of a unified policy in the sphere of precious metals and stones circulation.
Some powers of the Government of the Russian Federation have an indirect effect on the area of foreign exchange relations. For example, in order to protect the domestic market, the Government has the right to introduce temporary quantitative restrictions on exports or imports.
Other bodies providing currency regulation
The Central Bank and the Government of the Russian Federation are the main bodies of currency regulation, but not the only ones. In addition to them, regulatory functions in the field of currency relations are carried out:
- The Federal Assembly, which establishes the procedure for the formation of state. foreign exchange reserves and publishes federal laws covering all issues of the sphere of foreign exchange regulation;
- The President, who determines the rules for the export and import of precious metals, as well as decides on the provision of benefits to residents for the mandatory sale of foreign currency proceeds from exports;
- The Ministry of Finance, which provides a unified monetary policy of the Russian Federation and with the participation of the Central Bank, regulates the market of precious metals and stones;
- The State Customs Committee, which, with the participation of the Central Bank of the Russian Federation, establishes the procedure for export, as well as import of any currency values, by residents and non-residents of the state.
Each of the listed bodies provides currency regulation strictly within its authority, 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 designed to solve a problem significant for the state - the creation of an effective mechanism for the circulation of currency values with the aim of developing the Russian economy.