Conclusion
After a relatively long period of discussion, characterised by an uncertain approach towards transition, the Soviet authorities are now moving with decision towards the market. This statement applies to the reform as a whole and in particular to convertibility.
The convertibility process in the Soviet Union started from a relatively unfavourable position: not only because of the complete (internal and external) inconvertibility of the Rouble, but also because the country's past displays a sort of structural propensity towards inconvertibility.
It took the Soviet authorities some years to dismiss the doctrine of a parallel currency and the idea that convertibility is the final step of the transition. Recent legislative production in the Soviet Union (in particular the Banking law and the Currency law) are a good sign that they are proceeding in the right direction and practical experience seems to confirm this statement.
In 1991 the process has accelerated and more important progress was made towards unification of the exchange rates and the creation of a currency market: these are two steps which are fundamental for achieving partial external convertibility (current account operations made by non-residents), which in its turn is the first step towards broader convertibility. Probably within the end of the year external partial convertibility will be reached. This at last will increase the foreign contribution to the Soviet economy, thus improving domestic conditions. The events of August 1991 will most likely further accelerate the pace of the process, which is now without doubt irreversible.
Even if qualitatively positive results are achieved in the reform process however, great effort must still be made not only to complete and consolidate these results, but also to proceed further towards internal and financial convertibility.
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Cardani, A.M., Maggioni, S. The convertibility of the rouble. MOCT-MOST 2, 73–91 (1992). https://doi.org/10.1007/BF01101510
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DOI: https://doi.org/10.1007/BF01101510