Monetary reform in Russia, 1993

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Monetary reform in Russia in 1993 took place from July 26 to August 7 of that year.

Reform[edit]

Monetary Reform in 1993 pursued the goal of taming inflation and the exchange of the remaining banknotes in circulation 1961-1992 years for banknotes of a new sample. The reform was of confiscatory due to the fact that there was a number of restrictions in the exchange of banknotes. In addition, the reform was carried out during the summer holidays, which created additional problems for the citizens. In this regard, the Central Bank of the Russian Federation issued a clarification that the exchange of banknotes from 1 October 1993 is made exclusively for the production of documents proving the impossibility of exchange in a timely manner. This limitation was also aimed at combating the influx of currency notes from the former Soviet republics, as the central banks of the Republics ceased to look to the State Bank and started printing money.[1] In 1993 the central banks of the former member states began issue of their national currencies to replace the former soviet ruble, which was threat Russia to Russia since the old rubles could be sent to Russia and would de-stabilize its financial system.

As the official goals of the reform were declared the fight against inflation, retirement of treasury bills the old model of the State Bank of the USSR and the task of separation of monetary systems of Russia and other CIS countries, to use the ruble as a means of payment in the domestic money back. In fact, 17 July 1993 Russia withdrew from the ruble zone of the CIS, the ruble is actually September 26, 1993 as a means of payment interrelated economy CIS ceased to exist, and the government of Viktor Chernomyrdin deprive Russia of its ability to control all the cash and the issue of the economy depended on it republics of the ruble zone. Non-cash ruble in payments between the republics also ceased to exist.

Terms of monetary reform were set out in a telegram to the Central Bank of the Russian Federation N 131-93 of July 24, 1993 The telegram was signed by the Chairman of the Central Bank of Russia V Gerashchenko:

The Central Bank of the Russian Federation in accordance with the Law of the Russian Federation "On the monetary system of the Russian Federation" and the RSFSR Law "On the Central Bank of the Russian Federation" in order to prevent multiple modifications of the same value of banknotes in circulation and due to the sufficiency of reserves in bank notes and coins of the Bank of Russia of 1993 stops with zero hours (local time) on 26 July 1993 on the treatment of the entire territory of the Russian Federation government treasury bills of the USSR, the USSR State Bank of tickets and bank notes of the Bank of Russia of 1961-1992 years.

Initially, the exchange limit was set at 35,000 non-denominated rubles (at the time - about 35 dollars). The country started to panic. Two days later, Boris Yeltsin issued a decree where the exchange amount was increased to 100 thousand rubles. (Only about 100 U.S. dollars equivalent) per person and the deadline extended until the end of the exchange in August 1993.

Citizens of Russia (according to registration in the passport) could change the amount of 100 thousand rubles. What is stamped in the passport. Rumors of reform went ahead, the authorities denied them, while reform was carried out during the holiday season, when many were away from their place of residence. This limitation was also aimed at combating the influx of currency notes from the former Soviet republics. As a result, many people did not physically have time to exchange their cash savings, and the money was gone.

Enterprises could exchange cash within cash balances at the beginning of the day on July 26 and had to surrender them to the bank for the banking day on July 26. Amount of money handed over was not to exceed the limit set for the box office of the organization, and the amount of sales proceeds received by the cashier at the end of the day on July 25. [3]

Results[edit]

However, the reform has not strengthened the ruble. In fact, it has led to serious complications with its neighbors, as their currencies were tied to the ruble. The central bank had to transfer some of the new banknotes Kazakhstan and Belarus. In the second half of 1993, Russia tried to negotiate with the neighbors on the establishment of a new type of ruble zone, but only went to Belarus sign agreement to combine their monetary systems in the future.

References[edit]