[Russia] Kabir, Yakovlev, Savinskiy tr. by Zhong Jianping

(№.4,2016)

Abstract: As a key factor of budget and tax policies, the foreign exchange policy is an important tool for a country to prevent its economy from the exploitation of international unequal exchanges. It is also the fundamental guarantee to safeguard the national economic sovereignty. The poor economy of Russia and the stressful geopoliticalsituation makes its integration into the international financial system obviously more complex. In association with the preconditions and restrictions of the transition to capital account liberalization and floating exchange rate, the qualitative analysis to the current foreign exchange policy of Russia can clarify the complexity of implementing foreign exchange policies. The characteristics of Russia’s economic development determine the importance of exchange rate channel in the transmission mechanism of monetary credit policy, and also require that the country should implement controllable Ruble floating exchange rate system. Currently, the financial system of Russia has not reached the full development level, because the national financial system is still in the transition period, and its outstanding characteristics include the controllable floating exchange rate, inflation targeting and free movement of capital.

Keywords: budget and tax policies; financial globalization; exchange rate policy; capital mobilization liberation; exchange rate