TRANSFORMATION OF THE RUSSIAN CURRENCY MARKET UNDER SANCTIONS RESTRICTIONS AND DIGITIZATION OF CURRENCY RELATIONS

DOI 10.61726/5089.2024.78.11.001

Abstract

The study examines the key ways of the transformation of the Russian foreign exchange market under the conditions of introduced in 2022-2023 large-scale sanctions against the Russian financial system and economy. Changes in the composition and nature of the influence of various factors of exchange rate formation are analyzed against the backdrop of the consequences of sanctions pressure on the national foreign exchange market. The adaptation of the infrastructure of the domestic foreign exchange market, including the tools available to market participants, to the changing operating conditions of Russian business is considered. The issues of changes caused by sanctions and market transformation in the implementation of monetary policy by the Bank of Russia in the foreign exchange market are touched upon. The specificity of the functioning of the cash foreign currency market in Russia relative to the exchange segment is highlighted, caused by the introduction by unfriendly countries of an embargo against Russia on transactions with the cash currency of the corresponding countries and internal restrictions. The digitalization of currency relations in relation to the functioning of the Russian foreign exchange market under sanctions is considered in the context of the potential of digital currencies, which have been actively developed in the last decade, to overcome sanctions restrictions and improve the global monetary system as a whole.