Foreign exchange control is the most important set of restrictions in the form of regulatory acts and administrative measures for conducting all operations with foreign capital. The sovereign regulation of this sphere is partially responsible for the economic growth of the state, contributes to the development of the economy, going through the acquisition and establishment of new foreign policy contacts, creates suitable conditions for comfortable integration into the global economy. The introduction of Russia into the economic processes of the world community contributed to the formation of currency relations, which could not but affect the design of the corresponding domestic market. In addition, a separate, no less important institution has emerged related to foreign capital. We call it nothing but currency regulation.
The importance of currency control for the country's financial activities
The question of the need to apply the most stringent control measures at various stages of the development of state management has become urgent. You can get an answer to it by resorting to the international practice of applying several methods of regulating currency markets. They can be divided into two categories. These include methods of administrative and economic regulation.
It is a well-known fact that industrialized highly developed states, as a rule, hesitate to use the methodology of administrative influence. Such currency regulation is contrary to the fundamental principles of the influential financial organization of the IMF. Creating a functioning financial mechanism ensuring the proper level of currency control in the legal field of the state is the main predetermining condition. Without its observance, it will not be possible to ensure the country's economic interests. Another important task of the current mechanism is the mandatory accounting of import and export operations. It will help to identify possible violations of the currency legislation at the time of the conclusion or execution of foreign economic agreements.
Rights of participants in foreign exchange transactions
In addition, the selected regime of financial and legal control in the field of foreign exchange relations should in no case infringe on the rights of individual entities.
Whatever it was, residents and non-residents performing currency operations in the Russian Federation, have the following rights:
- To get acquainted with the acts of verification that are carried out by the currency control authorities and agents.
- To file a complaint about actions or decisions of the currency control authorities, their officials and agents with a court of general jurisdiction.
- Demand from the control authorities compensation for damage caused by their unlawful actions or omissions.
Responsibilities of residents and non-residents in actions with currency
As for the obligations of participants in currency transactions, they are authorized to:
- Provide only reliable and complete information at the request of the currency control authorities and agents, present any requested documents of currency control on opening and current account management related to the participation of a resident (non-resident).
- To compile reports on currency transactions carried out in accordance with the required terms, in accordance with the legislation, established rules, instructions. At the same time, it is important to save all involved in foreign exchange transactions for at least three years from the moment of the commission of an action in the sphere of foreign currency relations.
- Impeccably follow the recommendations and instructions of the bodies providing the implementation of currency control, eliminate the violations they found in the course of inspections in acts of currency regulation.
Basically, the use of administrative methods is the best option for a state going through the transition from one stage of economic development to a higher one.
The place of currency regulation in the financial development of states
The use of such an effective method as currency control has been resorted to by many countries experiencing not their best periods. The economic crisis is the main factor that plays a decisive role in the designation of such measures. For example, currency control was practically the only possible solution in the postwar years. Moreover, with its help, the authorities succeeded in successfully protecting the financial independence of the state without risking the monetary system. This method made it possible to achieve a stable economy by strengthening the national rate and the inclusion of foreign currencies.
Countries that use the methods of currency regulation and control
Currency control, as a convenient system with a multifunctional mechanism, was successfully implemented in the practice of such countries as Great Britain, France, Germany, Japan and many other world leaders. At the moment, in most successful countries with a stable economy, the need to apply control over foreign exchange operations has disappeared by itself.
The function of currency control to establish the stage of the regulated process was fully implemented and provided the expected results. At the same time, some powers that are going through the stage of establishing the economic system today continue to actively use this control regime. For example, the International Monetary Fund reports on at least 50 modern states using the condition for the repatriation of foreign exchange earnings. Among such powers are Poland, Czech Republic, China, Israel, Cyprus, Turkey, South Africa.
Control over foreign exchange transactions in Russia
As the long-term financial experience shows, only states with huge potential can cope with significant economic problems that have arisen without resorting to strict monetary control measures. Despite the growing global trend towards the gradual lifting of restrictions in the monetary sphere, the domestic financial and economic system, its condition, leaves much to be desired. A significant factor in the current situation in the state was the export of national currency without the necessary control impact, which does not allow Russia to finally abandon the regulation of foreign exchange transactions.
An extremely important task of such events is the timely suppression, detection and prevention of all kinds of violations of currency legislation. Together, this will help to achieve stability and stability of the ruble - the national Russian currency.
Monetary control authorities of the Russian Federation
The main currency control bodies in Russia are represented by the Central Bank and federal executive bodies. In turn, the Government’s mission in this matter is to coordinate the interaction of the above structures. The application of appropriate control measures in absolutely any area of the financial and economic activity of the state, especially when conducting foreign exchange transactions, needs to be reinforced by a properly developed regulatory framework.
If the main federal law on currency control has a lot of conflicts and “gaps”, then such legal flaws will find their use in numerous fraudulent schemes, which are likely to cause enormous damage to the financial security of the country.
Principles of Currency Regulation
The fundamental principles due to which currency control is carried out in Russia should be highlighted:
- The implementation of foreign exchange regulation policy directly depends on the prioritized economic priorities.
- The intervention of state bodies in foreign exchange transactions of both residents and non-residents is maximally excluded.
- Russia's policy in the international arena and the economic plan within the state are interconnected, aimed at achieving common goals.
- Currency control and regulation systems complement each other as a multifunctional mechanism.
- The rule of law and guaranteed provision of the Russian Federation's economic interests and protection of the rights of all participants in transactions with foreign currency, including residents and non-residents.
Currency regulation in Russia today
Since the collapse of the USSR, the systematization of the regulation of the monetary sphere has undergone a lot of changes. Under the powerful Soviet Union, the determining factor was the presence of a single state monopoly. Therefore, it is not surprising that all the rights to carry out operational actions with the currency, including the very fact of owning it, were only with the state. Not a single payment or receipt has passed the currency plan of the republics. Like any other sovereign property, the currency was sold or bought from citizens and organizations at the official established rate fixed by the USSR State Bank. In addition, the circulation of foreign capital and values within the Union outside state control was prosecuted by law. Responsibility for the commission of this economic crime determined measures under the Criminal Code.
After the country's transition to a new stage in the development of market relations in Russia, changes have also occurred in the field of currency regulation. For example, authorities made multiple attempts to remove administrative methods. Meanwhile, they still have not been able to completely move away from them.
