The Russian forex market: Moving toward world standards

Abstract

Russian foreign exchange statistics have some unique features regarding the calculation of metrics describing market size and structure. Every three years, there is an opportunity for comparing forex markets in different countries, when the Bank for International Settlements (further, BIS) issues a report, “Foreign Exchange and Derivatives Market Activity,” which describes key indicators and trends of the global forex market. Thanks to its latest report, published in September 2007 [1], one can assess the consequences of liberalization of the Russian foreign market and to determine the extent to which its trends match global ones. Comparisons with BIS statistics as a whole and with individual countries will show how close Russia, aspiring to the full convertibility of the ruble, has come to world standards not only in terms of liberalization of capital movements but the forex market size, structure, and technologies.