The Logic of Excess Currency Regulation
Existing exchange control requirements create barriers, both for individuals and for businesses, discriminate against national entrepreneurs as compared with foreign partners, and reduce domestic export. In addition, foreign exchange control limits foreign investors from doing business in Russia. The control system is very bulky and heavy administered. The existing foreign exchange restrictions today are no longer justified, because they do not contribute to achieving the macroeconomic objectives to ensure stability of the national currency and stability of the domestic foreign exchange market.
Russia is a member of many international agreements, which allow today the use of international cooperation mechanisms for raising capital inside Russia, while reducing the administrative burden on business and citizens.
Issues for Discussion
- Why is exchange control needed in Russia in the absence of the requirement of the mandatory sale of foreign currency proceeds?
- Is exchange control a restriction for the entrepreneurial activity of Russian business abroad and a barrier to foreign direct investment in Russia?
- Directions of improvement of exchange control and introduction of modern international instruments of interaction, including OECD (Organization for Economic Co-operation and Development)
Rector, Russian Foreign Trade Academy
Deputy Minister of Finance of the Russian Federation
Deputy Head, Federal Tax Service
Deputy Director, Centre for Tax Policy and Administration, OECD
Assistant to Senior Deputy Prime Minister of the Russian Federation, Mr. Igor I. Shuvalov
Head, Russia-OECD Centre, RANEPA
Partner, Goltsblat BLP
Economic Adviser to the Department of Financial Monitoring and Currency Control, Bank of Russia
Head, Department for Standards and International Cooperation, Federal Tax Service
State Secretary, Deputy Director, Federal Service for Financial Monitoring
Head of Division, Eurasia, Global Relations Secretariat, OECD
Deputy Director for Financial and Enterprise Affairs, OECD
Head, Department for Regular Reporting, Operational and Currency Control, Deutsche Bank