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Structural Transformation of the Russian Foreign Exchange Market: Dedollarization, Decentralization, Delocalization

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Studies on Russian Economic Development Aims and scope

Abstract—

The article discusses the key trends in the development of the Russian foreign exchange market in 2022 – dedollarization, decentralization, and delocalization. The authors analyze the structure of foreign exchange transactions, pointing to its change, which occurred under the influence of extreme factors, which include sanctions against the Russian Federation in general and financial market participants in particular. The analysis is confirmed by statistical data on transactions in the foreign exchange market. Proposals were made for the development of regulation in order to further stimulate foreign exchange transactions and settlements with friendly countries.

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Notes

  1. OTS (Over-The-Counter) is a short international designation of over-the-counter markets and trading systems.

  2. Bank of Russia Ordinance no. 6290-U, dated October 3, 2022, On the Procedure for Establishing and Publishing by the Central Bank of the Russian Federation the Official Exchange Rates of Foreign Currencies Against the Ruble.

  3. See also Decision of the Supreme Eurasian Economic Council dated October 11, 2017 no. 12 On the Main Directions for the Implementation of the Digital Agenda of the Eurasian Economic Union until 2025.

  4. Short-term (“cash”) conversion transactions with settlements up to three days.

  5. Draft Bank of Russia Directive On Amendments to Bank of Russia Instruction no. 199-I of November 29, 2019 “On Mandatory Ratios and Add-Ons to Capital Adequacy Ratios for Banks with a Universal License. http://www.cbr.ru/project_na/. Accessed January 5, 2023.

  6. On Amendments to Article 16 of the Federal Law On Organized Auctions. https://sozd.duma.gov.ru/bill/210089-8. Accessed January 5, 2023.

  7. Decision of the Board of Directors of the Bank of Russia on temporary requirements for a qualified central counterparty dated December 23, 2022. Official website of the Bank of Russia. https://cbr.ru/about_br/dir/rsd_2022-12-23_34_05/. Accessed January 5, 2023.

  8. Decree of the President of the Russian Federation of May 9, 2022 No. 134-rp On the Interdepartmental Working Group to Develop New Mechanisms in the Field of Foreign Exchange Regulation and International Settlements. https://www.garant.ru/hotlaw/federal/1542899/. Accessed January 5, 2023.

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Authors and Affiliations

  1. Institute of Economic Forecasting, Russian Academy of Sciences, 117418, Moscow, Russia

    V. Yu. Mishina

  2. Interstate Bank, Moscow, Russia; Financial University under the Government of the Russian Federation, 115162, Moscow, Russia

    L. I. Khomyakova

  3. Financial University under the Government of the Russian Federation, 115162, Moscow, Russia

    L. I. Khomyakova

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  1. V. Yu. Mishina
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  2. L. I. Khomyakova
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Correspondence to V. Yu. Mishina.

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Mishina, V.Y., Khomyakova, L.I. Structural Transformation of the Russian Foreign Exchange Market: Dedollarization, Decentralization, Delocalization. Stud. Russ. Econ. Dev. 34, 372–380 (2023). https://doi.org/10.1134/S1075700723030103

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