CURRENCY OPERATIONS OF COMMERCIAL BANKS

INTRODUCTION

Along with the development and improvement of the foreign exchange market, foreign exchange transactions developed and improved, new types of them appeared, and the technique for conducting them improved. This development can be traced by the following signs: before the advent of commercial banks, only one bank, Vnesheconombank of the USSR, was engaged in foreign exchange transactions in the country. At present, even many provincial banks that have foreign exchange licenses provide almost the entire range of foreign exchange services for their customers.

Banking activity in the field of transactions in foreign currencies inevitably tends to establish a uniform price range for a particular currency in all world financial centers. If at any point the market rate in one financial center deviates too much from the average, equilibrium is restored through arbitrage, which is the process of taking advantage of price differences across locations. Thus, the foreign exchange business acts as a very important regulator in the monetary system.

With the rapid development of the banking system in the Russian Federation and the emergence of new banks that have received licenses to carry out foreign exchange transactions, it becomes necessary to further develop the foreign economic activity of our country. Many commercial banks, having received a license to conduct foreign exchange transactions, faced difficulties in their conduct.

In this regard, there is a need to study and use the experience of foreign banks in the foreign exchange markets and the mechanism for conducting foreign exchange transactions on it.

Knowledge of the technique of conducting foreign exchange transactions in the market allows banks and participants in foreign trade transactions to insure against foreign exchange risks, avoid unreasonable losses of foreign currency, and receive additional profit on speculative games and exchange rate differences. All this is intended to help the banks of the Russian Federation in mastering the international currency market.

Expanding international relations, the increasing internationalization of economic life causes an objective need to study the exchange of some national monetary units for others.

The formation of a highly efficient economy in Russia is impossible without a developed financial market, an integral part of which is the foreign exchange market. Conducting operations in foreign currency by commercial banks of the Russian Federation is of great importance in the banking system of the country, which led to relevance our research.

Research objectives consist in studying the foreign exchange operations of commercial banks.

In the development of this goal, the following circle can be distinguished tasks:

- give the concept of the foreign exchange market;

Consider the classification and types of foreign exchange transactions;

To study the legal basis for the implementation of foreign exchange transactions;

Determine methods for regulating currency risks;

Consider foreign exchange transactions;

To study operations to attract and place foreign exchange funds;

Consider transactions for international settlements.

Research methods:

Processing, analysis of scientific sources;

Analysis of scientific literature, textbooks and manuals on the problem under study

An object research - foreign exchange operations of commercial banks

Subject research - the mechanism and technology of foreign exchange transactions.

Methodological and theoretical foundations of the study .

The theoretical and methodological basis of our work was the works of leading domestic experts, such as: E.F. Zhukov, I.T. Balabanova, Yu.A. Babicheva, O.I. Lavrushina, V.I. Kolesnikova, G.N. Burlaki, Ershova M. revealing the patterns and features of foreign exchange transactions in a commercial bank.

When writing the work, the current laws and regulations governing foreign exchange transactions were widely used; many periodicals providing analytical materials and data; as well as information resources of the Internet.

Structurally, the thesis consists of an introduction, three chapters, a conclusion and a bibliographic list.

1. THE CONCEPT AND LEGAL BASIS FOR CURRENCY OPERATIONS OF RUSSIAN COMMERCIAL BANKS

1.1 Foreign exchange market as part of the Russian financial market

The normal development of the economy constantly requires the mobilization of temporarily free funds of individuals and legal entities and their distribution and redistribution on a commercial basis between various sectors of the economy. In a well-functioning economy, this process takes place in the financial markets.

Financial instruments are various forms of short-term and long-term investment traded on financial markets. These include cash, securities, forwards, futures and swaps.

The financial market (loan capital market) is a mechanism for the redistribution of capital between creditors and borrowers with the help of intermediaries based on supply and demand. In practice, this is a set of financial institutions that direct the flow of funds from owners to borrowers and vice versa.

Fig.1.1. Structure of the financial market

The money market is a market for short-term credit operations (up to one year). The money market provides highly liquid funds to meet short-term financial resource needs. The money market is divided into:

Discount market - a market in which the main instruments are treasury and commercial bills, other types of short-term obligations. Thus, a huge mass of short-term securities circulate on the accounting market, the main characteristic of which is high liquidity and mobility;

The interbank market is a part of the loan capital market, where temporarily free cash resources of credit institutions are attracted and placed by banks among themselves, mainly in the form of interbank deposits for short periods. The most common terms of deposits are 1, 3 and 6 months, the deadlines are from 1 day to 2 years (sometimes 5 years). The funds of the interbank market are used by banks not only for short-term, but also for medium- and long-term active operations, balancing balances, fulfilling the requirements of state regulatory bodies;

Foreign exchange markets serve the international payment turnover associated with the payment of monetary obligations of legal entities and individuals from different countries. The specifics of international payments is the absence of a means of payment generally accepted for all countries. Therefore, a necessary condition for settlements in foreign trade, investments, interstate payments is the exchange of one currency for another in the form of the purchase or sale of foreign currency by the payer or recipient. Foreign exchange markets are official centers where currencies are bought and sold based on supply and demand.

The capital market covers medium and long-term loans, as well as stocks and bonds. It is subdivided into the securities market (medium- and long-term) and the market for medium- and long-term bank loans. The capital market is the most important source of long-term investment resources for governments, corporations and banks.

The foreign exchange market is a sphere of economic relations that manifests itself in the implementation of an operation for the sale and purchase of foreign currency and securities in foreign currency, as well as operations for the investment of foreign exchange capital.

The foreign exchange market is an official financial center where the purchase and sale of currencies and securities in foreign currency is concentrated on the basis of supply and demand for them. From a functional point of view, foreign exchange markets ensure the timely implementation of international settlements, insurance against foreign exchange risks, diversification of foreign exchange reserves, foreign exchange intervention, profit making by their participants in the form of a difference in exchange rates. From an institutional point of view, foreign exchange markets are a set of authorized banks, investment companies, stock exchanges, brokerage houses, foreign banks engaged in foreign exchange transactions. From an organizational and technical point of view, the foreign exchange market is a set of communication systems that interconnect banks of different countries that carry out international settlements and other foreign exchange transactions.

The main participants in the foreign exchange market are:

1) Central banks of different countries of the world

2) Commercial banks

3) Exchanges and brokerage houses

4) Investment and insurance funds

5) Corporate Speculators

6) Private investors

The main participants in the foreign exchange market are commercial banks, which not only diversify their portfolios with foreign assets, but also carry out foreign exchange transactions on behalf of firms entering foreign markets as exporters and importers. Currency transactions for the export and import of goods and services of each country form the basis for determining the value of the national currency.

The foreign exchange market performs the following main functions:

1) servicing the international circulation of goods, services and capital;

2) the formation of the exchange rate on the basis of supply and demand for the currency;

3) hedging (insurance) against currency and credit risks;

4) conducting monetary policy (central banks, the Fed, treasuries);

5) making a profit in the form of a difference in exchange rates and interest rates on various debt obligations (commercial banks, enterprises).

A system of relationships between various economic entities is developing in the foreign exchange market, the main subjects of the foreign exchange market are: transnational banks, commercial banks, commercial, industrial and financial companies, central banks, stock exchanges, international and regional organizations, brokerage companies, private limes, etc.

At the present stage, the foreign exchange market looks like a combination of national, regional and world markets, the boundaries between which are practically erased. However, initially the foreign exchange market is formed in the form of a national foreign exchange market.

Depending on the degree of organization, different types of foreign exchange markets are formed:

1) organized or stock exchange markets;

2) unorganized or interbank foreign exchange markets.

In organized foreign exchange markets, more than 1/2 of all foreign exchange transactions are carried out on currency exchanges, which act as non-profit enterprises and set the main tasks of mobilizing temporarily free foreign exchange resources and organizing trading.

The unorganized foreign exchange market includes all over-the-counter foreign exchange transactions that are made to a greater extent directly between banks, and therefore it is called interbank. In industrialized countries, about 90% of foreign exchange transactions are carried out in this foreign exchange market.

Foreign exchange markets can be classified according to a number of criteria: by scope, in relation to foreign exchange restrictions, by types of foreign exchange resources, by the degree of organization.

By area of distribution, i.e. in terms of breadth of coverage, it is possible to distinguish between international and domestic foreign exchange markets. In turn, both international and domestic markets consist of a number of regional markets, which are formed by financial centers in certain regions of the world or a given country.

According to the types of exchange rates used, the foreign exchange market can be with one regime and with a dual regime.

A single regime market is a foreign exchange market with free exchange rates, i.e. with floating exchange rates, the quotation of which is established at exchange auctions.

A dual regime currency market is a market where both a fixed and a floating exchange rate are applied at the same time. The introduction of a dual currency market is used by the state as a measure to regulate the movement of capital between the national and international loan capital markets. This measure is designed to limit and control the influence of the international loan capital market on the economy of a given state.

According to the degree of organization, the foreign exchange market is exchange and over-the-counter.

The exchange currency market is an organized market, which is represented by a currency exchange. Currency exchange - an enterprise that organizes trading in currency and securities in foreign currency. The exchange is not a commercial enterprise. Its main function is not to receive high profits, but to mobilize temporarily free funds through the sale of foreign currency and securities in foreign currency and to establish the exchange rate, i.e. its market value.

The exchange currency market has a number of advantages: it is the cheapest source of currency and foreign exchange funds; orders put up for exchange auctions have absolute liquidity.

The liquidity of currency and securities in foreign currency means their ability to quickly and without loss in price turn into the national currency.

The over-the-counter currency market is organized by dealers, who may or may not be members of the currency exchange, and conduct it by telephone, telefax, computer networks.

The exchange and over-the-counter markets contradict each other to a certain extent and at the same time complement each other. This is due to the fact that, while performing the general function of trading in currency and circulation of securities in foreign currency, they use various methods and forms of selling currency and securities in foreign currency.

When classifying foreign exchange markets, it is necessary to single out the markets for eurocurrencies, eurobonds, eurodeposits, eurocredits, as well as "black" and "gray" markets.

The eurocurrency market is the international currency market of Western European countries, where transactions are carried out in the currencies of these countries. The functioning of the eurocurrency market is associated with the use of currencies in non-cash deposit and loan transactions outside the countries issuing these currencies.

The Eurobond market expresses financial relations on debt obligations with long-term loans in Eurocurrencies, issued in the form of bonds of borrowers. The bond contains data on the amount of debt, the conditions and terms of its repayment, the procedure for obtaining interest in accordance with coupons.

Coupon - part of a bond certificate, which, when separated from it, gives the owner the right to receive interest.

The eurodeposit market expresses stable financial relations for the formation of deposits in foreign currency in commercial banks of foreign countries at the expense of funds circulating on the eurocurrency market.

The eurocredit market expresses stable credit relations and financial relations for the provision of international loans in eurocurrency by commercial banks of foreign states.

1.2 The concept and classification of foreign exchange transactions

In order to reveal the essence and content of the concept of "currency transactions", it is necessary to define the main, key terms. According to the Federal Law "On currency regulation and currency control" dated December 10, 2003 No. 173-FZ, the currency of the Russian Federation is:

banknotes in the form of banknotes and coins of the Bank of Russia that are in circulation as a legal means of cash payment on the territory of the Russian Federation, as well as the indicated banknotes withdrawn or withdrawn from circulation, but subject to exchange;

funds in bank accounts and bank deposits.

Foreign currency includes:

banknotes in the form of banknotes, treasury bills, coins that are in circulation and are legal tender in the relevant foreign state or group of states, as well as banknotes withdrawn or withdrawn from circulation, but subject to exchange;

· funds on accounts in monetary units of foreign states and international monetary or settlement units.

A new law on currency regulation "On Currency Regulation and Currency Control", declaring a fundamentally different approach to state influence on participants in currency transactions. The operation is assumed to be performed freely, unless otherwise provided by law.

There are three principles underlying the Law:

If the procedure for conducting a currency transaction is not established, it is carried out without restrictions (clause 2, article 5 of the Law),

International (resident - non-resident) currency transactions are carried out freely, with the exception of a limited range of capital movement transactions listed in the Law (Article 6 of the Law),

Currency transactions between residents are prohibited, unless otherwise provided by the Law (Article 9 of the Law).

Disappeared from the new Law is the distinction between currency transactions for current currency transactions and currency transactions associated with the movement of capital. Currency transactions are differentiated depending on the composition of their participants in the transaction:

between residents,

Between residents and non-residents,

Between non-residents and non-residents.

Currency transactions between residents

Currency transactions between residents are prohibited, except for:

1) transactions related to settlements in duty-free shops, as well as with settlements in the sale of goods and the provision of services to passengers along the route of vehicles in international transportation;

2) transactions between commission agents (agents, attorneys) and principals (principals, principals) when commission agents (agents, attorneys) provide services related to the conclusion and execution of contracts with non-residents on the transfer of goods, the performance of work, the provision of services, the transfer of information and results of intellectual activity, including exclusive rights to them;

3) operations under contracts of transport expedition, transportation and chartering (charter) when the freight forwarder, carrier and charterer provide services related to the transportation of goods exported from the Russian Federation or imported into the Russian Federation, transit transportation of goods through the territory of the Russian Federation, as well as under insurance contracts specified cargoes;

4) transactions with external securities issued on behalf of the Russian Federation, carried out through the organizers of trade in the securities market of the Russian Federation, subject to the registration of rights to such securities in depositories established in accordance with the legislation of the Russian Federation;

5) transactions of legal entities with external securities, provided that the rights to such securities are recorded in depositories established in accordance with the legislation of the Russian Federation, and settlements are made in the currency of the Russian Federation;

6) transactions related to the implementation of mandatory payments (taxes, fees and other payments) to the federal budget, the budget of a subject of the Russian Federation, the local budget in foreign currency in accordance with the legislation of the Russian Federation.

Currency operations on transactions between authorized banks, made by them on their own behalf and at their own expense, are carried out in the manner established by the Central Bank of the Russian Federation.

Without restrictions, currency transactions between residents and authorized banks are carried out, related to:

1) with the receipt and repayment of loans and borrowings, the payment of interest and penalties under the relevant agreements;

2) with the deposit of residents' funds to bank accounts (bank deposits) (on demand and for a specified period) and the receipt of residents' funds from bank accounts (bank deposits) (on demand and for a specified period);

3) with bank guarantees, as well as with the fulfillment by residents of obligations under guarantee and pledge agreements;

4) with the acquisition by residents of bills of exchange issued by these or other authorized banks from authorized banks, presenting them for payment, receiving payment on them, including by way of recourse, collecting penalties on them, as well as with the alienation by residents of these bills of exchange to authorized banks in the procedure established by the Federal Law of March 11, 1997 N 48-FZ "On a transfer and promissory note";

5) with the purchase and sale by individuals of cash and non-cash foreign currency and checks (including traveler's checks), the nominal value of which is indicated in foreign currency, for the currency of the Russian Federation and foreign currency, as well as with the exchange, replacement of banknotes of a foreign state ( groups of foreign states), accepting, for sending for collection to banks outside the territory of the Russian Federation, foreign currency in cash and checks (including traveler's checks), the nominal value of which is indicated in foreign currency, not for the purposes of carrying out entrepreneurial activities by individuals;

6) with the payment of commission to authorized banks;

7) with other currency transactions classified as banking transactions in accordance with the legislation of the Russian Federation.

Currency transactions between non-residents

Non-residents have the right, without restrictions, to transfer foreign currency between themselves from accounts (from deposits) in banks outside the territory of the Russian Federation to bank accounts (to bank deposits) in authorized banks or bank accounts (bank deposits) in authorized banks to accounts (to deposits) in banks outside the territory of the Russian Federation or in authorized banks.

Non-residents have the right to carry out foreign exchange transactions with domestic securities on the territory of the Russian Federation, subject to the requirements established by the antimonopoly legislation of the Russian Federation and the legislation of the Russian Federation on the securities market, in the manner established by the Central Bank of the Russian Federation, which may require the use of a special account when performing the specified currency transactions.

Currency transactions between non-residents on the territory of the Russian Federation in the currency of the Russian Federation are carried out through bank accounts (bank deposits) opened on the territory of the Russian Federation.

Currency transactions between residents and non-residents

Currency transactions between residents and non-residents are carried out without restrictions, with the exception of currency transactions provided for in Articles 7, 8 and 11 of the Federal Law, in respect of which restrictions are established in order to prevent a significant reduction in gold and foreign exchange reserves, sharp fluctuations in the exchange rate of the Russian Federation, as well as to maintain stability balance of payments of the Russian Federation. These restrictions are non-discriminatory in nature and are canceled by the currency regulation authorities as the circumstances that caused their establishment are eliminated.

Foreign currency transactions include:

Maintenance of foreign currency accounts of the clientele;

Non-trading operations;

Establishment of correspondent relations with Russian authorized and foreign banks;

International payments related to the export and import of goods and services;

Purchase and sale of foreign currency in the domestic foreign exchange market;

Attraction and placement of foreign currency within the Russian Federation;

Credit transactions in international money markets;

Deposit and conversion operations in international money markets.

Opening and maintenance of currency accounts of the clientele.

This operation includes the following types:

Opening foreign currency accounts for legal entities and individuals;

Calculation of interest on account balances;

Providing overdrafts (special clients by decision of the bank's management);

Providing statements as the transaction is completed;

Registration of an invoice archive for any period of time;

Execution of operations, by order of clients, regarding the funds in their foreign currency accounts;

Control over export-import operations.

Operations on international settlements.

These operations are related to the export and import of goods and services.

This operation is a necessary condition for conducting bank accounts. The decision to establish correspondent relations by another foreign bank should be based on the implementation of regular export-import operations of the clientele

Non-trading operations of a commercial bank .

Non-trading operations include customer service operations that are not related to the settlement of exports and imports of goods and services of bank customers with capital movements

conversion operations.

Conversion transactions are transactions for the purchase and sale of cash and non-cash foreign currency (including those with limited conversion) against cash and non-cash rubles of the Russian Federation.

Operations to attract and place foreign currency funds .

attraction of deposits:

issuance of loans:

placement of loans in the interbank market.

1.3 Legal framework for foreign exchange transactions

The currency legislation of the Russian Federation consists of Federal Law No. 173-FZ dated December 10, 2003 “On Currency Regulation and Currency Control” and federal laws adopted in accordance with it (acts of the currency legislation of the Russian Federation).

Federal Law No. 173-FZ dated 10.12.2003 "On currency regulation and currency control" includes all measures taken recently to liberalize currency legislation and replaced the Law of the Russian Federation No. 3615-1 dated 09.10.1992 "On currency regulation and currency control ".

The new Federal Law clarifies the concepts of foreign currency, currency of the Russian Federation, residents, non-residents, authorized banks. In addition, the concepts of external securities and internal securities, a special account, and currency exchanges have been introduced. The concept of currency values has changed. Precious metals and precious stones, the circulation of which is regulated by another federal law, are excluded from the composition of currency values. Currency values now include only foreign currency and foreign securities.

Unlike the current Law, the principles of currency regulation and currency control are enshrined in the Federal Law. The main principles are:

1) the priority of economic measures in the implementation of state policy in the field of currency regulation;

2) exclusion of unjustified interference by the state and its bodies in the currency transactions of residents and non-residents;

3) the unity of the foreign and domestic monetary policy of the Russian Federation;

4) the unity of the system of currency regulation and currency control;

5) ensuring by the state the protection of the rights and economic interests of residents and non-residents in the implementation of foreign exchange transactions.

Bodies of currency regulation

The bodies of currency regulation in the Russian Federation are the Central Bank of the Russian Federation and the Government of the Russian Federation.

To implement the functions provided for by the Federal Law, the Central Bank of the Russian Federation and the Government of the Russian Federation issue, within their competence, acts of currency regulation bodies that are binding on residents and non-residents.

The Central Bank of the Russian Federation establishes uniform forms of accounting and reporting on foreign exchange transactions, the procedure and terms for their submission, and also prepares and publishes statistical information on foreign exchange transactions. The Central Bank of the Russian Federation, the Government of the Russian Federation, as well as the federal executive bodies specially authorized to do so by the Government of the Russian Federation, carry out all types of currency transactions regulated by this Federal Law, without restrictions.

Domestic foreign exchange market of the Russian Federation

Purchase and sale of foreign currency and checks (including traveler's checks), the nominal value of which is indicated in foreign currency, in the Russian Federation is carried out only through authorized banks.

The Central Bank of the Russian Federation establishes for credit institutions the requirements for drawing up documents for the sale and purchase of foreign currency in cash and checks (including traveler's checks), the nominal value of which is indicated in foreign currency. Establishing a requirement for identification of a person when buying and selling by individuals foreign currency in cash and checks (including traveller's checks), the nominal value of which is indicated in foreign currency, is not allowed, except for cases provided for by federal laws.

The Central Bank of the Russian Federation establishes the procedure for the sale and purchase of foreign currency and checks (including traveler's checks), the nominal value of which is indicated in foreign currency, by residents who are not individuals and non-residents, which may provide for:

1) establishing a requirement for the use of a special account by residents and non-residents;

2) establishing a requirement for residents to reserve an amount not exceeding the equivalent of 100 percent of the amount of purchased foreign currency for a period not exceeding 60 calendar days prior to the date of the purchase of foreign currency;

3) establishing a requirement for non-residents to reserve an amount not exceeding the equivalent of 20 percent of the amount of foreign currency sold for a period of not more than a year.

Rights and obligations of residents in the course of foreign exchange transactions

Residents have the right to open bank accounts (bank deposits) in foreign currency in authorized banks without restrictions, unless otherwise provided by the Federal Law. Unless otherwise provided by the Federal Law, settlements in the course of foreign exchange transactions are made by resident legal entities through bank accounts in authorized banks, the procedure for opening and maintaining which is established by the Central Bank of the Russian Federation.

Settlements in the course of foreign exchange transactions may be made by resident legal entities through accounts opened with banks outside the territory of the Russian Federation, at the expense of funds credited to these accounts in accordance with the Federal Law.

Settlements in the course of foreign exchange operations are made by resident individuals through bank accounts in authorized banks, the procedure for opening and maintaining which is established by the Central Bank of the Russian Federation, with the exception of the following foreign exchange operations carried out in accordance with the Federal Law:

1) transfer by a resident natural person of currency valuables as a gift from the Russian Federation, a constituent entity of the Russian Federation and (or) a municipality;

2) donations of currency values to the spouse and close relatives;

3) bequests of currency values or their receipt by inheritance right;

4) acquisition and alienation by a resident individual for the purpose of collecting single banknotes and coins;

5) a transfer by a resident individual from the Russian Federation and to the Russian Federation without opening bank accounts, carried out in accordance with the procedure established by the Central Bank of the Russian Federation, which may only limit the amount of the transfer, as well as postal transfer;

6) purchase from an authorized bank or sale to an authorized bank by a resident individual of cash foreign currency, exchange, replacement of banknotes of a foreign state (a group of foreign states), as well as acceptance of cash foreign currency for collection in banks outside the territory of the Russian Federation.

Settlements in the course of foreign exchange transactions may be made by resident individuals through accounts opened with banks outside the territory of the Russian Federation, at the expense of funds credited to these accounts in accordance with the law.

Write-offs and (or) crediting of funds, internal and external securities from a special account and to a special account of a resident are carried out in the manner that may provide, if it is established by the Central Bank of the Russian Federation, only:

1) establishment of a requirement for a resident to reserve an amount not exceeding the equivalent of 100 percent of the amount of money and (or) the value of securities debited from a special account of a resident for a period not exceeding 60 calendar days prior to the day of the currency transaction;

2) establishing a requirement for a resident to reserve an amount not exceeding the equivalent of 20 percent of the amount of money and (or) the value of securities credited to a special account of a resident for a period of not more than a year.

Residents can make settlements through their bank accounts in any foreign currency, carrying out, if necessary, a conversion operation at the rate agreed with the authorized bank, regardless of the foreign currency in which the bank account was opened.

Professional participants in the securities market open special brokerage accounts with authorized banks to account for non-residents' funds.

Currency control in the Russian Federation, bodies and agents of currency control

Currency control in the Russian Federation is carried out by the Government of the Russian Federation, currency control bodies and agents in accordance with this Federal Law and other federal laws.

The bodies of currency control in the Russian Federation are the Central Bank of the Russian Federation, the federal body (federal bodies) of executive power authorized (authorized) by the Government of the Russian Federation.

Currency control agents are authorized banks reporting to the Central Bank of the Russian Federation, as well as professional participants in the securities market that are not authorized banks, including register holders (registrars) reporting to the federal executive body for the securities market, and territorial bodies of federal executive bodies. authorities that are currency control bodies.

The Central Bank of the Russian Federation exercises control over the implementation of foreign exchange operations by credit institutions, as well as currency exchanges.

The Government of the Russian Federation ensures the coordination of activities in the field of currency control of federal executive bodies that are currency control bodies, as well as their interaction with the Central Bank of the Russian Federation.

The Government of the Russian Federation ensures the interaction of professional participants in the securities market that are not authorized banks as currency control agents with the Central Bank of the Russian Federation.

The Central Bank of the Russian Federation interacts with other currency control bodies and ensures the interaction of authorized banks with them as currency control agents in accordance with the legislation of the Russian Federation.

CURRENCY RISKS OF COMMERCIAL BANKS

2.1 Currency risks and methods of their management

Currency risk, or the risk of exchange rate losses, is associated with the internationalization of the banking market, the creation of transnational (joint) enterprises and banking institutions and the diversification of their activities and represents the possibility of monetary losses as a result of fluctuations in exchange rates.

For its part, currency risks are structured as follows: commercial, conversion, translation, forfeiting risks. Commercial risks are associated with the unwillingness or inability of the debtor (guarantor) to pay off its obligations.

Conversion risks are the risks of foreign exchange losses on specific transactions. These risks, in turn, are divided into: economic risk, transfer risk, transaction risk.

The economic risk for a firm is that the value of its assets and liabilities may fluctuate up or down (in national currency) due to future changes in the exchange rate.

For a bank, investing in foreign assets will affect the size of the future stream of payments denominated in local currency. In addition, the very amount of payments to be repaid on these loans will change when the foreign currency value of the loan is converted into the equivalent in the national currency.

Transfer risk is associated with differences in accounting for foreign currency assets and liabilities. If there is a fall in the exchange rate in which these assets are denominated, then the value of assets falls: with a decrease in the value of assets, the size of the share capital of a firm or bank falls. From an economic point of view, more important is the risk of the transaction, which considers the impact of a change in the exchange rate on the future flow of payments, and, consequently, on the future profitability of a firm or bank.

Transaction risk arises from the uncertainty of the domestic currency value of a foreign exchange transaction in the future. The changes and profitability of a firm mean a change in its creditworthiness and therefore it is very important for a bank to keep abreast of clients' foreign exchange transactions. In an environment of high volatility in exchange rates, one of the ways to protect against currency risks is to choose the most acceptable contract currency for counterparties. It is preferable for the exporter and creditor to use a relatively more stable currency. The choice of currency can have a significant impact on the efficiency of trading and lending operations.

When choosing the currency of the contract, the following factors should be taken into account: forecast of trends in the exchange rate of this currency in the period between the moment of the conclusion of the contract and the timing of payment obligations; the nature of the goods and services sold; traditions that have developed in the commodity market; form of organization of trade (one-time transaction, long-term contract, intergovernmental agreement).

Currency conversion risk can also be reduced by using safeguard clauses, gold clauses, and currency clauses.

Protective clauses - contractual terms included by agreement of the parties in interstate economic agreements, providing for the possibility of changing or revising the original terms of the contract in the process of its execution.

The gold clause gained importance during and after the First World War due to the abolition of the gold standard in some countries and its virtual disappearance in others. The currencies of these countries began to depreciate both in relation to gold and in relation to the currencies of other countries in which the gold standard continued to function. The reservations were based on the gold parity of currencies, which is the ratio of their gold content. Parity-based reservations operated both under conditions of free exchange of monetary units for gold, and under reduced (gold - motto and gold - dollar) standards. Gold clauses were widely used as long as the governments of the capitalist countries took measures to maintain the market price of gold at the official level. With the collapse of the "gold pool" in 1868, a dual market for gold was created, making the official price of gold unrealistic and putting an end to the application of the gold clause.

A currency clause is the inclusion in a credit or commercial contract of a contractual condition, according to which the amount of payment of the contractual condition is made dependent on the change in the exchange rate between the currency of the price of the goods (currency of the loan) and another, more stable currency (reservations). The establishment in the contract of different currencies of price and payment is actually the simplest form of a currency clause. In this case, a more stable currency is chosen as the price currency. In the case of an ordinary currency clause, the amount payable is dependent on the change in the exchange rate of the currency of the clause against the currency of the price. In both cases, the amount of the payment will change to the same extent that the rate of the reservation currency will change. For example, the price of goods under the contract is 1 million francs. francs. The reservation currency is the US dollar. The exchange rate of the dollar against the franc on the date of the contract is 10.00 francs, then the amount payable will have to increase by 10% and amount to 1.1 million francs, i.e. per 100 thousand francs. more. A currency clause based on the market rate provides for the determination of the ratio between currencies according to the current quotation in the currency markets. The difference between the rates of the seller and the buyer - the margin - is a source of income for the bank, at the expense of which it covers the costs of the transaction and, to a certain extent, serves to insure foreign exchange risk.

Translational (accounting) risks arise from the revaluation of assets and liabilities of balance sheets and the Profit and Loss account of foreign branches of clients and counterparties. These risks, in turn, depend on the choice of the translation currency, its stability and a number of other factors. Recalculation can be carried out according to the translation method (at the current exchange rate on the date of recalculation) or according to the historical method (at the exchange rate on the date of the specific transaction). Some banks take into account all current transactions at the current rate, and long-term - at the historical rate; others analyze the level of risk of financial transactions at the current rate, and others - at the historical rate; still others choose one of two accounting methods and use it to control the totality of their risky operations.

In strategic terms, protection against foreign exchange risk is closely related to an active pricing policy, types and cost of insurance, the degree of reliability of insurance companies of both the bank itself and its counterparties and clients.

In addition, almost all major banks are trying to form a portfolio of their foreign exchange transactions, balancing assets and liabilities by type of currency and terms. Basically, all external methods of currency risk management are focused on their diversification. For this purpose, such urgent currency transactions as forwards, futures, options (both in the interbank markets and on stock exchanges) are most widely used. Currency is sold on the terms of "spot" (with immediate or two-day settlement), "swap" (spot / forward, spot between different banks) or "forward" ("outright" between the bank and the client).

Forfaiting risks arise when the forfaiter (often a bank) assumes all of the exporter's risks without recourse. But at the same time, forfeiting (a method of refinancing commercial risk) has its advantages, which can be used to reduce the level of risk by:

· simplification of balance relations of possible obligations;

· improvement (at least temporarily) of liquidity, which makes it possible to further strengthen financial stability;

· reducing the probability and possibility of losses by insuring possible difficulties that almost inevitably arise during the presentation of previously insured claims;

• reduction or even absence of risks associated with fluctuations in interest rates;

· a sharp reduction in the level of risks associated with exchange rate fluctuations of currencies and changes in the financial stability of the debtor;

· the absence of risks and costs associated with the activities of credit authorities to collect money on bills of exchange and other payment documents.

But, of course, forfeiting cannot be used always and everywhere. This is one way to reduce risk.

The most common methods of currency risk insurance are:

1) hedging, i.e. creation of a compensating currency position for each risky transaction. In other words, there is a compensation of one currency risk - profit or loss - by another corresponding risk;

2) currency swap, which has two varieties. The first is reminiscent of the execution of parallel loans, when two parties in two different countries provide loans of different sizes with the same terms and methods of repayment, but denominated in different currencies. The second option is simply an agreement between two banks to buy or sell a currency at a spot rate and reverse the transaction on a predetermined date (in the future) at a specific spot rate. Unlike parallel loans, swaps do not include interest payments;

3) mutual offset of risks for assets and liabilities, the so-called "matching" method, where by deducting the inflow of currency from the amount of its outflow, the bank's management has the opportunity to influence their size.

Other transnational (joint) banks (SB) use the method of "netting" (netting), which is expressed in the maximum reduction of foreign exchange transactions by their consolidation. For this purpose, the coordination of the activities of all departments of a banking institution should be at a high level.

Hedging involves the creation of counterclaims and liabilities in foreign currency. The most common type of hedging is the conclusion of urgent currency transactions. For example, an English trading firm that expects US$ in 6 months, hedges by selling these future receipts in pounds sterling at a forward rate for 6 months. By entering into a forward foreign exchange transaction, the firm creates US dollar liabilities to balance existing dollar claims. In the event of a depreciation of the dollar against the pound sterling, losses under a trading contract will be offset by profits from a forward currency transaction.

Correspondent relations between banks serve as the basis for carrying out spot transactions, which have an exceptional impact on the currency position. Currency transactions "spot" account for approximately 90% of all foreign exchange transactions.

Their main goals are:

· meeting the needs of the bank's customers in foreign currency;

transfer of funds from one currency to another;

Conducting speculative transactions.

Banks use spot transactions to maintain the minimum required working balances in foreign banks in Nostro accounts to reduce surpluses in one currency and cover the need in another currency. With this, banks regulate their foreign exchange position in order to avoid the formation of uncovered account balances. Despite the short term for the delivery of foreign currency, the counterparties bear the currency risk in this transaction, as in the conditions of "floating" exchange rates, the exchange rate can change in two business days. Conducting foreign exchange transactions and minimizing risks requires some preparation. At the preparatory stage, the analysis of the state of the currency markets is carried out, trends in the movement of rates of various currencies are revealed, and the reasons for their change are studied. Based on this information, dealers, taking into account their currency position, using computer technology, determine the average exchange rate of the national currency against foreign currency. The analysis carried out makes it possible to develop the direction of foreign exchange transactions, i.e. secure a long or short position in the particular currency they are trading in. It should be noted that in large banks, special groups of economists-analysts are engaged in analyzing the position of currencies in the markets, and dealers, relying on their information, independently choose the directions for conducting foreign exchange transactions. In smaller banks, the functions of analysts are performed by the dealers themselves; they directly carry out currency transactions: with the help of means of communication (telephone, telex) they negotiate the purchase and sale of currencies and conclude transactions. The procedure for concluding a transaction includes: selection of currencies to be exchanged; fixing courses; determination of the amount of the transaction; value transfer of funds; indication of the delivery address of the currency.

At the final stage, the transaction on the accounts is carried out and its documentary confirmation is carried out.

In spot transactions, the day on which the settlement of a particular foreign exchange transaction is completed is called the "value date" and is used as a risk protection. International payments cannot be made on a Sunday, holiday or non-business day. That is, settlements must be made on the working day of both countries.

In Russian banks, for each foreign currency, the open currency position is determined separately. For this purpose, the currency positions of the authorized bank are converted into the ruble equivalent at the official exchange rates of the ruble in force on the reporting date, which are established by the Central Bank of the Russian Federation. The passive balance is indicated with a minus sign, indicating a short open currency position; the active balance is indicated with a plus sign, indicating a long open currency position. At the same time, in case of formation of the authorized capital of an authorized bank in foreign currency, when calculating the open currency position for this foreign currency, the value of the passive balance increases by the corresponding amount.

To calculate the open currency position in rubles, the difference between the absolute value of the sum of all long open currency positions in rubles and the absolute value of the sum of all short open currency positions in rubles is determined.

The total value of all long and the total value of all short open currency positions in foreign currencies and rubles must be equal.

2.2 Financial instruments as a method of foreign exchange risk insurance

Foreign exchange risk insurance methods are financial transactions that allow you to either fully or partially avoid the risk of loss arising from an expected change in the exchange rate, or to receive speculative profit based on such a change.

The methods of insurance of currency risks include:

structural balancing (assets and liabilities, accounts payable and receivable);

changing the payment term;

forward transactions;

swap operations;

financial futures;

Lending and investment in foreign currency;

restructuring of foreign currency debt;

Parallel loans

· leasing;

· discounting claims in foreign currency;

"currency baskets";

· implementation by branches of payments in "growing" currency;

self-insurance.

It should be borne in mind that the methods: change the payment term; forward transactions; swap operations; option trades; financial futures and discounting foreign currency claims are used for short-term hedging, while the methods of lending and investing in foreign currency; restructuring of foreign currency debt; parallel loans; making payments by branches in a "growing" currency; self-insurance are used for long-term risk insurance. Structural balancing methods (assets and liabilities, accounts payable and receivable) and "currency baskets" can be successfully used in all cases. It should be noted that the methods of parallel loans and the implementation by branches of payments in the "growing" currency are, in principle, available only to those companies or banks that have foreign branches. Some of these methods are difficult to apply.

The essence of the main methods of hedging is to carry out currency exchange transactions before an unfavorable change in the exchange rate occurs, or to compensate for losses from such a change through parallel transactions with a currency whose exchange rate changes in the opposite direction.

Structural balancing consists in striving to maintain such a structure of assets and liabilities that will allow covering losses from changes in the exchange rate with profits received from the same change in other balance sheet positions. In other words, such tactics boil down to the desire to have the maximum possible number of "closed" positions, thus minimizing currency risks. But since it is not always possible and reasonable to have "closed" all positions, one should be ready for immediate structural balancing actions. For example, if an enterprise or a bank expects significant changes in exchange rates as a result of the devaluation of the ruble, then it should immediately convert free cash into the currency of payment. With regard to the ruble, this, of course, can be done only if there is such a right (expressed by entries on an off-balance sheet or in some other way) or after the creation of an internal foreign exchange market. If we talk about the ratio between different foreign currencies, then in such a situation, in addition to conversion and a falling currency into a more reliable one, it is possible to carry out, say, the replacement of securities denominated in a “sick” currency with more reliable stock values.

One of the simplest and at the same time the most common ways of balancing is to match the currency flows that reflect income and expenses. In other words, each time concluding a contract that provides for the receipt or, conversely, the payment of foreign currency, an enterprise or bank should strive to opt for the currency that will help it to close in full or in part already existing "open" currency positions.

Changing the due date, commonly referred to as the "leads and lags" tactic, is the manipulation of the timing of settlements, used in anticipation of sharp changes in the exchange rate of the price or payment currency. Among the most used forms of such tactics are: early payment for goods and services; speeding up or slowing down the repatriation of profits, repayment of the principal amount of loans and payment of interest and dividends; regulation by the recipient of foreign currency of the timing of the conversion of proceeds into the national currency, etc. The use of this tactic allows you to close short positions in foreign currency before the growth of the exchange rate and, accordingly, long positions - before it falls. The possibility of using such a method, however, is largely due to the financial conditions of foreign trade contracts. In other words, contracts should provide for the possibility of early payment in advance and clearly stipulate the size of the penalty for timely payment. In the latter case, a delay in payment due to an expected change in the exchange rate will only be justified if the savings resulting from payment at the new rate outweigh the accrued interest.

Since 1975, banks have mainly applied new methods of regulating foreign exchange risks. For this purpose, three new instruments were created: swaps, futures contracts for financial instruments (forwards and futures) and options, which we will consider in detail.

Forward transactions for insurance of currency risks are used to evade risks associated with foreign currency purchase and sale transactions. A forward foreign exchange contract is an indissoluble and binding contract between a bank and its client for the purchase or sale of a certain amount of a specified foreign currency at the exchange rate fixed at the time of conclusion of the contract, for performance (i.e. delivery of the currency and its payment) in the future, specified in the contract. This time represents a specific date, or the period between two specific dates. So, the forward contract fixes:

a) the number of currencies exchanged;

b) date of currency exchange;

c) forward exchange rate.

Forward contracts are used to reduce uncertainty and hence risk. Risks by themselves never go away. They can only be shared with someone, sharing at the same time the profit from the transaction. Usually banks enter into forward contracts for up to 1 year, but recently there has been a tendency to increase the terms of forwards and there are already numerous examples of contracts with a term of 6-7 years.

An important motive for concluding a forward contract is the desire to insure your business against the risks of changes in the exchange rate. A forward currency contract can be either fixed or optional.

The exchange rate for futures transactions differs from the corresponding rate for cash transactions. When the rate for a futures transaction is higher than the cash rate, then the corresponding premium to the cash rate is called a premium. If the exchange rate for an urgent transaction is lower, then the discount from the cash rate is called a discount.

An option forward contract at the choice of the client can be executed either:

At any time, from the date of the conclusion of the contract to the specific date of its implementation;

During the period between two specific dates.

The purpose of the option contract is to avoid having to renew the forward foreign exchange contract and extend it for several days, as this can be quite costly in terms of costs per day.

A currency option gives the buyer the right (not the obligation) to buy or sell: at a certain, pre-agreed date in the future, a certain amount of currency in exchange for another. An option can be compared to insurance - it is used only under adverse circumstances.

In contrast to a forward transaction, an option is used to protect against risks with high costs with an inaccurate basis for calculating the standard amount, value date, up to 2 years only for major currencies.

Depending on which of the participants and how has the right to change the terms of the transaction, there are: a buyer's option or a transaction with a preliminary premium, a seller's option or a transaction with a reverse premium, a temporary option.

In the case of a call option or a pre-premium transaction, the option holder has the right to receive the currency on a certain date at a stipulated rate. The buyer reserves the right to refuse to accept the currency by paying a premium to the seller as compensation. In a put option or a reverse premium trade, the option holder can deliver the currency on a specified date at a specified rate. The right to withdraw from the transaction belongs to the seller, and he pays a premium to the buyer as compensation.

A variety of option transactions is a temporary option, which was historically preceded by a rack operation with the aim of simultaneously conducting speculative transactions based on an increase and decrease in the exchange rate. Such an option, granted by the bank to the client, is an option with respect to the period of time when the currency exhibition will be carried out, and such a transaction must be executed before the agreed time. Under this transaction, the payer of the premium has the right to demand the execution of the transaction at any time during the option period at the previously fixed rate. Thus, the participant in the transaction pays a premium for the right to choose the most favorable current rate for the conversion of the currency received as a result of the option transaction. In this case, the premium does not play the role of a compensation, since it is impossible to refuse to execute the transaction during the period of the option. When executing the transaction, the counterparties specify which of them will act as the seller and which as the buyer. Then one of them, having paid a premium to the other, either buys the currency or sells it. This deal is the more profitable for the participants, the more fluctuations in the exchange rate.

The most common options are calls and puts. A currency call option guarantees the person who has acquired it the right (but not the obligation) to buy a currency at a certain point in time at a certain rate, and a put option guarantees the right to sell on similar terms.

Because every right has a price, the buyer of an option must pay the seller a certain amount, called the option premium, because you can't get value without paying for it.

There are two types of calls and puts: European and American. The European option can only be exercised during the fall of a limited period around the expiration date, while the American option can be exercised at any time before the expiration of the option. These terms indicate only the origin of this type of option. In both America and Europe, both types can now be used.

Option contracts can also be concluded outside the stock exchanges. In this case, they resemble forward contracts. The buyer of the option, of course, pays the seller an option premium for the rights granted to him.

Determining the "natural" or "fair" price of an option is one of the hardest problems in financial mathematics. The Black-Scholes model, which is fundamental in this area, relies on a sophisticated mathematical apparatus and the most complex probabilistic constructions.

Compound options: caps, floors, collars, participation caps and captions - differ from basic options in that they are valid for a long time and are multi-period options. These new financial products have been successfully used over the past 10 years to hedge interest rate risks. However, the potential scope of their application is much wider. Over the past two years, multi-period options have become widely used to manage currency risks, and work is already underway to introduce them to the commodity markets.

Caps are multi-period options that can be used to hedge against an increase in the interest rate (or exchange rate) over the long term. Caps are bought by companies that want to insure themselves against an increase in the interest rate above a certain value. They are sold by dealers by caps, which are usually banks. The dealer can sell and buy caps, profiting from the difference in the ask and buy prices

The floor is a multi-period option, much like a cap option. The difference lies in the fact that in this transaction, the dealer and the client company agree not on the “ceiling”, but on the lower limit - the “floor” (in English, Floor, hence the name of the transaction).

Collar is a combination of cap and floor. By entering into a collar contract, the firm insures against the risks of too high and too low rates at the same time. Of course, for this you can buy a cap and floor separately, but it is more convenient to do the same using a collar.

So, a currency option is not the same as a forward currency option contract. Unlike a forward foreign exchange contract, the option does not have to be exercised.

Instead, when the expiration date of a currency option arrives, its owner can either exercise the right to exercise the option or let it expire by avoiding the trade, i.e. simply giving up the option.

A swap is an exchange of assets between two counterparties on mutually beneficial terms. Depending on what is exchanged, there are currency, interest and commodity swaps.

A swap trade consists of two trades:

cash transaction (with immediate delivery of funds), which is accounted off-system before the date of execution (valuation) and in the balance sheet on the corresponding value date;

· a futures transaction, which until the moment of the movement of funds is taken into account on off-balance accounts, and on the date of execution - in the balance sheet.

The classic “swap” currency transaction, i.e. the “spot” + “forward” transaction, is a currency transaction that combines the purchase or sale of a currency on the terms of a cash “slot” transaction with the simultaneous sale or purchase of the same currency for a period at the “forward” rate ”, adjusted for a premium or discount depending on the movement of the exchange rate. Thus, swap transactions are a combination of a spot transaction and a reverse forward transaction, with both transactions being made with the same counterparty at the same time; both transactions have the same transaction currency; for both transactions, the amount of the transaction currency is the same.

When comparing "swap" transactions and transactions with a temporary option, it should be noted that transactions with a temporary option provide full protection against currency risks, while "swap" transactions only partially insure against them. This is due to the fact that when conducting transactions "swap" there is a currency risk due to a change in the opposite direction of the discount or premium in the period between the day of the transaction and the day the currency is delivered.

An interest rate swap involves an agreement between two parties to mutually make interest payments on a specified amount in the same currency, for example, when one party pays interest to the other at the floating interbank rate LIBOR but receives interest at a fixed rate. A "swap" transaction with a currency means an agreement to exchange fixed amounts of currencies, i.e. Both parties exchange loan commitments. The last two transactions can be combined, i.e. represent a “swap” with currency and interest rates at the same time. This means that one party pays principal in one currency and interest at a floating rate of LIBOR in exchange for receiving an equivalent amount in another currency and interest at a fixed rate.

Interest rates on loans granted in the European market may be based on the interest rate of the opening bank, or "LIBOR".

LIBOR is the rate for placing three-month deposits on the London interbank market. The main interest rates for large banks in the London interbank market are announced every day at 11.00 am local time, 2 business days before the payment of funds. LIBOR rates are fixed by the British Bankers Association based on quotes from 16 international banks. A margin is added to it, depending on the financial condition of the borrower, the market situation, and the maturity of the loan.

LIBID - the rate for attracting deposits in the London interbank market. This is the basic interest rate on deposits of London first-class banks for banks of the same class. LIBID rates are not fixed, they are lower than LIBOR by 1/8%.

A swap can be used to roll over a forward contract, to cover currency risk by performing spot and swap transactions as an investment of liquid funds.

A transaction in which foreign currency is sold on a "spot" basis with its simultaneous purchase on a "forward" basis is called a "report". A transaction where there is a purchase of foreign currency on a spot basis and its simultaneous sale on a forward basis - deportation.

Swap transactions are carried out by agreement between two banks, usually for a period of one day to 6 months. These operations can be carried out between commercial banks; commercial and central banks and the central banks themselves. In the latter case, they represent mutual lending agreements in national currencies. Since 1969, a multilateral system of mutual exchange of currencies has been created through the Bank for International Settlements in Basel based on the use of swap operations.

Sometimes "swap" operations are carried out with gold. They have the goal of retaining ownership of it and at the same time acquiring the required foreign mark for a period of time.

Swap transactions are convenient for banks: they do not create an open position (purchases are covered by sales), they temporarily provide the necessary currency without the risk associated with a change in its exchange rate. Swap operations are used to:

Making commercial transactions: the bank sells foreign currency on the terms of immediate delivery and at the same time buys it for a period. For example, a commercial bank, having excess dollars for a period of 6 months, sells them for the national currency on a spot basis. At the same time, taking into account the need for dollars in 6 months, the bank buys them at the forward rate. In this case, a loss on the exchange rate difference is possible, but in the end the bank makes a profit by lending the national currency;

Acquisition by the bank of the necessary currency without currency risk (on the basis of counter-deal coverage) to ensure international settlements, diversification of foreign exchange reserves.

Currency futures are also used to insure currency risk.

Exchange rate futures are contracts to buy or sell a specified amount of a currency at some date in the future. In this they are similar to forward foreign exchange contracts, but unlike forward contracts they:

very easy to cancel

are concluded for a fixed amount;

· all conditions of contracts, except for the price, are determined by the exchange;

· are sold on official exchanges (for example, in 1992 the London International Financial Futures Exchange - LIFFE) was opened;

· stipulate that futures traders must pay "cash margin" (ie pay "cash upfront") to exchange dealers to ensure futures obligations are met.

Traders in futures at the exchange rate on the LIFFE are called dealers (usually banks). They operate with large amounts of money, and are looking for a way to avoid currency risks.

A futures contract can be thought of as a standardized and securitized (issued in the form of a security) forward contract.

It should be noted that futures trading is conducted not only in major currencies, but also in many exchange commodities (grain, sugar, metals, etc.), shares of leading corporations, liabilities, interest rates, various stock indices, etc. The essence, motives and basic mechanisms of futures trading remain unchanged. The most important trend in all modern financial and commodity markets is the growing role of speculators and the growing influence of futures markets on conventional spot markets.

3. CURRENCY OPERATIONS OF RUSSIAN COMMERCIAL BANKS

3.1 Currency transactions

In the implementation of international settlements in banking, currency transactions are widely used.

Foreign exchange transactions are operations for the sale, settlement, lending in foreign currency.

Currency transactions are the most mobile element of a currency position and involve a certain risk. With their help, banks meet the needs of their clients in foreign currency by transferring capital, including "hot" money from one currency to another, and also carry out arbitrage and speculative transactions.

Currency transactions are divided into:

1) SPOT transactions;

2) forward transactions;

3) swap transactions

4) Currency arbitrage

SPOT transactions.

A SPOT transaction is a conversion transaction with a value date on the second business banking day after the day the transaction was concluded.

Cash foreign exchange transactions are carried out mainly on the "SPOT" terms, which implies a two-day period for the transfer of currencies after the conclusion of the transaction at the rate fixed at the time of its conclusion. This allows you to transfer funds to any country and complete the transaction. Correspondent relations between banks serve as the basis for conducting SPOT.

Their essence lies in the purchase and sale of currency on the terms of its delivery by counterparty banks on the second business day from the date of the transaction at the rate fixed at the time of its conclusion. In this case, working days are considered for each of the currencies participating in the transaction, i.e. if the next day after the date of the transaction is non-working for one currency, the delivery time for currencies is increased by 1 day, but if the next day is non-working for another currency, then the delivery time increases by 1 more day.

Banks use SPOT transactions to maintain the minimum required working balances in foreign banks in nostro accounts in order to reduce surpluses in one currency and cover the need in another currency. With this, banks regulate their foreign exchange position in order to avoid the formation of uncovered account balances. Despite the short term for the delivery of foreign currency, the counterparties bear the currency risk under this transaction, as in the conditions of "floating" exchange rates, the exchange rate can change even in two business days.

Urgent deals.

In addition to SPOT cash transactions, there are futures transactions. Futures transactions are currency transactions for which more than two business days after their conclusion:

Currency change insurance;

Extraction of speculative profit.

Forward transactions include forward transactions, transactions with an "outrider" and with an "option".

Interbank futures transactions are called "forward".

An urgent forward transaction (forward outriqht) is a conversion transaction, the value date of which is more than two working banking days from the date of conclusion of the transaction. Derivative exchange operations (such as futures, options, swaps, etc.) are not a conversion operation.

Futures currency transactions (forwards, futures) are foreign exchange transactions in which the parties agree on the delivery of a conditional amount of foreign currency after a certain period after the conclusion of the transaction at the rate fixed at the time of its conclusion. Two features of urgent currency transactions follow from this definition.

There is a time interval between the moment of conclusion and execution of the transaction. In modern conditions, the term for the execution of a transaction, i.e., the supply of currency, is defined as the end of the period from the date of the transaction (a period of 1-2 weeks, 1,2,3,6,12 months and up to 5 years) or any other period within term;

The exchange rate for an urgent currency transaction is fixed at the time of the conclusion of the transaction, although it is executed after a certain period of time.

It should be noted that in practice there are situations when "forward" transactions are concluded with a delivery date different from the standard terms (1,2,3,6,12 months). Then the "outright" rate is calculated according to the following scheme. The exchange rate difference between the nearest standard periods is divided by the number of days between them, and the result is multiplied by the number of days between the date of delivery and the next standard period following it. The resulting number is subtracted from the exchange rate value of the next period.

Among futures transactions with foreign currency, there are also transactions with an "outright" - with the condition of the delivery of currency on a certain date, and transactions with an "option" - with the condition of a non-fixed delivery date. One of the parties to the option transaction has the right to choose for itself more favorable conditions for the fulfillment of obligations. For this right, the second party receives a premium depending on the duration of the option, on the difference in rates at the conclusion of the transaction and specified in this operation. Their goal is to limit losses from fluctuations in exchange rates, that is, insurance of receipts and payments in currency from currency risk, depending on which of the participants and how has the right to change the terms of the transaction, they distinguish between a buyer's option or a transaction with a preliminary premium, a seller's option or a deal with a reverse premium, a temporary option.

SWAP transactions

A SWAP transaction is a bank transaction consisting of two opposite conversion transactions for the same amount, concluded on the same day. At the same time, one of these transactions is urgent, and the second is a transaction with immediate delivery.

Swap transactions are foreign exchange transactions that combine the purchase and sale of a currency on the terms of a spot cash transaction with the simultaneous sale or purchase of the same currency for a period at the forward rate. The sequence of these operations has its own name. Thus, a transaction in which a foreign currency is sold on the "SPOT" terms with its simultaneous purchase on the "forward" terms is a report. Swap transactions are carried out by agreement between two banks, usually for a period of one day to 6 months. These transactions can take place between commercial banks and between central banks themselves. In the latter case, they are mutual lending agreements in national currencies.

Swap transactions are a type of currency transaction that combines cash transactions. Such transactions have been known since the Middle Ages, when Italian bankers carried out transactions with bills; later they were developed in the form of report and deport operations. A report is a combination of two mutually related transactions: the cash sale of foreign currency and its purchase for a period. Deportation is a combination of the same transactions, but in reverse order: the purchase of foreign currency on a spot basis and the sale of the same currency for a period.

Later, "SWAP" transactions took the form of banks exchanging deposits in different currencies for equivalent amounts. The disadvantage of such an operation was an increase in the bank's balance sheet by the amount of this operation, which worsened its coefficients and created additional risks. Currency operation "SWOP" solves these problems: liabilities are recorded on off-balance sheet items, currency exchange is performed in the form of purchase and sale, i.e., a single transaction.

"SWAP" is a currency transaction that combines the purchase and sale of two currencies on the terms of immediate delivery with a simultaneous counter-transaction for a certain period with the same currencies. At the same time, two partners (banks, corporations, etc.) agree on counter payments. For SWAP transactions, the cash transaction is carried out at the SPOT rate, which in the counter transaction (terms) is adjusted to take into account the premium or discount, depending on the movement of the exchange rate. At the same time, the client saves on margin - the difference between the rates of the seller and the buyer for a cash transaction. Swap operations are convenient for banks: they do not create an open position (the purchase is covered by the sale), they temporarily provide the necessary currency without the risk associated with a change in its exchange rate.

Swap operations are performed not only with currencies, but also with interest. The essence of this interest transaction is that one party undertakes to pay interest to the other at the rate of LIBOR in exchange for receiving interest at a fixed rate in order to profit from the difference between them. At the same time, a party that has medium-term investments at a fixed interest rate, but short-term liabilities or liabilities at a revised interest rate, insures its interest rate risk (interest position) by “buying” a long-term fixed rate, or vice versa.

When comparing “SWOP” transactions and transactions with a temporary option, it should be noted that transactions with a temporary option provide full protection against currency risks, while the “SWOP” transaction only partially insures against them. This is due to the fact that when conducting swap transactions, there is a currency risk due to a change in the opposite direction of the discount or premium in the period between the day of the transaction and the day the currency is delivered.

“SWOP” operations are divided into several types, although they have nothing to do with the classic “SWOP” currency transaction (ie “SPOT” + “forward”). In the case of intertwining foreign exchange transactions with banking participants in such transactions, they receive considerable benefits. For example, a classic swap transaction involves two parties agreeing to make a series of payments to each other.

The operation "SWAP" with interest rates involves an agreement between the two parties on mutual payments of interest for a certain amount in one currency. A "SWAP" operation with a currency means an agreement on the exchange of fixed amounts of currencies.

Sometimes "SWAP" operations are carried out with gold. They have the goal of retaining ownership of it and at the same time acquiring the necessary foreign currency for a period.

Currency arbitrage

Currency arbitrage - the implementation of operations for the purchase of foreign currency with its simultaneous sale in order to profit from the difference in exchange rates. The emergence of a difference in exchange rates in the markets of different countries is the essence of the concept of spatial arbitrage. It is a kind of currency arbitrage. With the development of computers and modern means of communication, an increase in the volume of transactions, differences in rates in different markets began to occur very rarely, so spatial arbitrage has lost its significance.

Depending on the purpose, speculative and conversion currency arbitrage is distinguished. Speculative arbitrage aims to take advantage of the difference in exchange rates due to their fluctuations. In this case, the source and destination currencies are the same, i.e. the transaction is carried out according to the scheme: euro - US dollar; US dollar - euro. Conversion arbitrage, first of all, aims to buy the most profitable necessary currency. In fact, this is the use of competitive quotations of various banks in one or different currency markets. Its possibilities are wider, since the difference in rates may not be as large as in speculative arbitrage, in which it should not only cover the margin between the rates of the buyer and seller, but also make a profit.

In modern conditions, exchange rates in different currency markets rarely deviate by an amount equal to or greater than the difference between the rates of the seller and the buyer, which makes it possible to practice only conversion arbitrage in space: the bank acquires the necessary currency in the currency market where it is cheaper.

Thus, temporary arbitrage inevitably carries an element of speculation, since the dealer, depending on his forecast of a possible change in the exchange rate, chooses one or another policy to cover transactions in the near future, hoping to profit from them. If the dealer assumes that the dollar rate will soon rise, and the client offers him to sell dollars, the bank can limit the amount of the sale or immediately cover it with a counter-transaction by buying dollars, and if there is significant market volatility or uncertainty in the dynamics of rates, refuse to carry out the transaction. If the client offers the bank to buy dollars, he can make a deal for a large amount, hoping to subsequently cover it at the expense of a counter-transaction and make a profit both on the margin between the bid and ask rates, and on the appreciation of the dollar that is beneficial for him.

3.2 Operations to attract and place foreign exchange funds

These operations include the following types:

1) attraction of deposits:

individuals;

legal entities, including interbank deposits.

2) issuance of loans:

individuals;

legal entities.

3) placement of loans in the interbank market.

One of the most complex and risky types of operations of commercial banks with foreign currency is credit operations in foreign currency. In this case, the placement of foreign currency funds by banks is carried out on the domestic or international market.

To conduct credit operations in foreign currency, qualification and technical requirements are imposed:

· Knowledge of trends in interest rates in the national and world currency markets;

Knowledge of the features of international credit agreements, the rules for their execution;

experience of working with foreign banks and firms;

· equipping with computer equipment and modern communication channels.

These operations are the main ones for commercial banks of the Russian Federation both in terms of profitability and importance in servicing bank customers.

Income from clients' foreign currency accounts includes commissions for issuing transaction passports, as well as a commission for cashing out foreign currency (since maintaining a clients' foreign currency account consists of commissions for each transaction that relate to different types of foreign exchange transactions). This is the main income from this operation. Income from the placement of funds includes: interest on loans issued (short-term, long-term), deposits placed; placement of funds in foreign currency securities and income on them. Income from international settlements includes: commission for transfers, collection of payment documents in foreign currency, opening and issuing letters of credit.

Conversion income includes:

income from an open currency position;

· Income from operations on the MICEX on futures and forward contracts.

Income from non-trading operations includes: a commission charged from customers for servicing plastic cards, income from the purchase and sale of foreign currency in cash.

In recent years, large Russian banks have expanded the possibility of issuing foreign currency loans to customers. The Bank may issue loans to enterprises and organizations in foreign currency with their repayment through the use of foreign exchange earnings from the export of goods and services produced as a result of the implementation of credited activities or at the expense of other foreign exchange earnings.

Loans in foreign currency are usually provided by the borrower under the guarantee of a Russian or foreign organization, which provides for the bank's right to unconditionally write off funds in the required amount from the foreign currency account of this organization in the event that the borrower fails to repay the obligations under the loan received within the prescribed period.

The Bank may accept as collateral for foreign currency loans the borrower's and (or) its guarantor's letters of credit or payment guarantees issued in their favor by foreign correspondent banks.

Estimated value of collateral is established on the basis of the opinion of bank specialists or independent appraisers.

Interest rates on loans in foreign currency are set by banks in such a way that the amount of interest received by the bank covers its costs of raising funds used to provide loans. The frequency and terms of payment of interest for the use of the loan are determined by the bank in agreement with the borrower. The amounts of accrued interest, as well as exchange differences, are not included in the total credit limit and are charged entirely to the borrower's account. The source of repayment of the principal debt, payment of accrued interest and exchange differences are the funds of the currency fund of the borrower or its guarantor, as well as foreign exchange earnings from the export of products stored in a foreign currency account.

Typically, loan agreements stipulate that the borrower must use the loan in foreign currency strictly for its intended purpose.

The use of loans in foreign currency is permitted only if copies of borrowers' contracts with foreign firms - counterparties, previously agreed with the bank, are submitted to the bank in a timely manner. The terms of the conclusion of contracts and the period of settlement on them must strictly correspond to the terms of use of loans. The total amount of purchases should not exceed the amount of the loan granted. Interest on the loan is accrued from the moment of its actual use.

Upon the due date of payment, the bank repays the borrower's debt on a loan in foreign currency at the expense of funds on his foreign currency account. In the absence or shortage of funds in the borrower's foreign currency account, the required amount is debited from the foreign currency account of the superior organization - guarantor in accordance with the terms of its guarantee obligation.

Conducting foreign exchange lending operations involves the assessment of foreign exchange risks, that is, the risk of foreign exchange losses associated with changes in the foreign exchange rate. Debtors and creditors, holders of accounts in foreign currency are exposed to currency risk. The occurrence of currency risks is associated with the following factors:

1) The main currency risk may arise upon completion of a transaction in ruble terms with subsequent conversion of the proceeds received into its currency equivalent.

2) Currency risk also arises when using ruble loan collateral. A sharp appreciation of the exchange rate may result in the collateral not covering the existing debt to the borrower's bank.

3) Another equally important factor is the depreciation of the currency in which the credit operation is carried out against the ruble.

Currency risk for the borrower may arise in the event of completion of a settlement transaction in one currency if it is necessary to convert it into another. A change in the exchange rate may lead to existing losses for the client and the emergence of currency risk for the bank.

In settlements in the form of documentary collection - the issuing bank assumes the obligation to present the documents provided by the principal to the payer (importer) for acceptance and receipt of money.

When bank transfers are used in settlements, all foreign exchange earnings are credited to transit accounts in authorized banks. After it is received on the transit currency account, the instruction to transfer the received amount or part of it to the current account also indicates the sale of a part of export earnings in the domestic foreign exchange market in the order of mandatory sale.

Carrying out operations for international settlements related to the export of goods and services requires the bank to fulfill certain conditions, namely:

· knowledge of Russian legislation on checks and bills of exchange, unified rules and customs of the International Chamber of Commerce on collection, letters of credit and guarantees;

· knowledge of a foreign language and relevant banking terminology, practical skills in conducting commercial banking correspondence in a foreign language;

knowledge of the procedure for reconciliation of settlements and settlement of unmatched amounts;

Availability of means of international communication;

· equipping with the technique of keying and encryption of payment instructions, the availability of samples of signatures and key tables for encrypting transmitted messages;

equipment with computer terminals.

Establishment of correspondent relations with foreign banks.

This operation is a necessary condition for the bank to conduct international settlements. The decision to establish correspondent relations with a particular foreign bank should be based on the real need to service the regular export-import operations of the clientele.

For international settlements, the bank opens correspondent accounts "Nostro" and "Loro" in foreign banks and at home. Nostro account is a current account opened in the name of a commercial bank with a correspondent bank. Loro account is a current account opened with a commercial bank in the name of a correspondent bank.

To organize correspondent relations with foreign banks, the Central Bank imposes the following qualification and technical requirements:

· knowledge of foreign languages, allowing to conduct banking and commercial correspondence;

· knowledge of the main trends in modern international economic relations, the basics of economic analysis to assess the economic and financial situation of individual banks;

· knowledge of the main provisions of interbank correspondent agreements;

Availability of operational international communication channels.

3.4 Other currency transactions

To provide foreign exchange services to Russian and foreign citizens, banks organize exchange offices.

In accordance with the Federal Law "On Currency Regulation and Currency Control", the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)", the Federal Law "On Banks and Banking Activities", the Federal Law "On Counteracting the Legalization (Laundering) of Income Received by criminal means and financing of terrorism”, the Bank of Russia establishes the following procedure for opening, closing, organizing the work of exchange offices and the procedure for authorized banks to carry out certain types of banking operations and other transactions in cash foreign currency and the currency of the Russian Federation, checks (including traveler’s checks) , the nominal value of which is indicated in foreign currency, with the participation of individuals.

The Bank opens (closes) an exchange office, actually changes the location (postal address), telephone numbers of the exchange office and other information about the exchange office in accordance with the procedure established by Bank of Russia Instruction No. 109-I dated January 14, 2004 “On the Procedure for the Bank of Russia on the State Registration of Credit Institutions and the Issuance of Licenses for Banking Operations”, registered by the Ministry of Justice of the Russian Federation on February 13, 2004, for operating cash desks outside the cash center.

The following types of operations with cash currency and checks are carried out in exchange offices:

1) Purchase of cash foreign currency for the cash currency of the Russian Federation.

2) Sale of cash foreign currency for cash currency of the Russian Federation.

3) Sale of cash foreign currency of one foreign state (group of states) for cash foreign currency of another foreign state (group of states) (conversion).

4) Exchange of banknotes (banknotes) of a foreign state (group of states) for banknotes (banknotes) of the same foreign state (group of states).

5) Replacement of a damaged banknote (banknotes) of a foreign state (group of states) with an undamaged banknote (banknotes) of the same foreign state (group of states).

6) Replacement of a damaged banknote (banknotes) of a foreign state (group of states) with an undamaged banknote (banknotes) of another foreign state (group of states).

7) Purchase of a damaged banknote (banknotes) of a foreign state (group of states) for the cash currency of the Russian Federation.

8) Acceptance of banknotes of foreign states (a group of states) and banknotes of the Bank of Russia, which raise doubts about their authenticity, for sending for examination.

9) Purchase of checks for the cash currency of the Russian Federation.

10) Purchase of checks for cash foreign currency.

11) Sale of checks for cash currency of the Russian Federation

12) Sale of checks for cash foreign currency.

13) Payment of checks in cash in the currency of the Russian Federation

14) Payment of checks in cash in foreign currency.

15) Reception for sending cash foreign currency and checks for collection.

16) Acceptance of cash foreign currency for crediting to accounts using payment cards.

17) Acceptance of cash currency of the Russian Federation for crediting to accounts using payment cards.

18) Issuance of cash foreign currency from accounts using payment cards.

19) Issuance of cash currency of the Russian Federation from accounts using payment cards.

Authorized banks, branches of authorized banks, additional offices, credit and cash offices, operating cash desks outside the cash center and other internal structural units, in addition to operations with cash currency and checks mentioned above, may also carry out the following operations with cash currency and checks:

1) Purchase of checks with crediting of funds to the accounts of individuals in foreign currency.

2) Purchase of checks with crediting of funds to the accounts of individuals in the currency of the Russian Federation.

3) Sale of checks at the expense of funds on the accounts of individuals in foreign currency.

4) Sale of checks at the expense of funds on the accounts of individuals in the currency of the Russian Federation.

5) Acceptance of foreign currency in cash for making a transfer from the Russian Federation on behalf of an individual without opening a bank account (except for postal orders).

6) Acceptance of cash currency of the Russian Federation for making a transfer from the Russian Federation on behalf of an individual without opening a bank account (except for postal orders).

7) Payments in cash foreign currency on transfers to the Russian Federation without opening a bank account in favor of an individual.

8) Payments in cash in the currency of the Russian Federation on transfers to the Russian Federation without opening a bank account in favor of an individual.

9) Acceptance of banknotes of foreign states (a group of states) that raise doubts about their authenticity in order to verify their authenticity.

10) Acceptance of damaged banknotes of foreign states (group of states) for crediting to the accounts of individuals.

11) Acceptance of cash foreign currency for crediting to accounts of individuals in foreign currency.

12) Acceptance of cash foreign currency for crediting to accounts of individuals in the currency of the Russian Federation.

13) Acceptance of cash currency of the Russian Federation for crediting to accounts of individuals in foreign currency.

14) Issuance of cash foreign currency from accounts of individuals in foreign currency.

15) Issuance of cash foreign currency from the accounts of individuals in the currency of the Russian Federation.

16) Issuance of cash currency of the Russian Federation from accounts of individuals in foreign currency.

Registration of operations for the acceptance (issuance) of cash foreign currency and the currency of the Russian Federation using payment cards is carried out in accordance with the regulations of the Bank of Russia governing these operations.

The procedure and conditions for carrying out operations to transfer funds from the Russian Federation on behalf of individuals without opening a bank account, as well as the obligations of an authorized bank (branch of an authorized bank) to transfer funds are established by an authorized bank (branch of an authorized bank) in accordance with the requirements of the legislation of the Russian Federation and regulations of the Bank of Russia.

Service by a cashier to an individual at an exchange office is carried out in accordance with the procedure established by Instruction No. 113-I dated April 28, 2004.

In authorized banks, branches of authorized banks, additional offices, credit and cash offices, operating cash desks outside the cash center, exchange offices and other internal structural divisions, operations for receiving, issuing, storing, collecting, backing up cash currency, as well as working with damaged, doubtful which have signs of forgery with banknotes of foreign states (a group of states) are carried out in the manner established by the Regulation of the Bank of Russia No. 199-P, taking into account the requirements of Instruction No. 113-I of April 28, 2004.

Also, in accordance with Instruction No. 113-I dated April 28, 2004, operations with checks are carried out, work with damaged, doubtful and having signs of forgery checks in authorized banks, branches of authorized banks, additional offices, credit and cash offices, operating cash desks outside the cash center , exchange offices and other internal structural divisions.

Operations for the acceptance, issuance, storage, collection and reinforcement of checks in authorized banks, branches of authorized banks, additional offices, credit and cash offices, operating cash desks outside the cash center, exchange offices and other internal structural divisions are carried out in the manner established by Regulation of the Bank of Russia No. 199-P for valuables.

Operations with cash currency and checks are carried out by the exchange office only with that foreign currency, the exchange rate of which is set by the Bank of Russia in relation to the currency of the Russian Federation. In this case, the list of foreign currencies with which the bank carries out these operations is determined by the authorized bank (branch of the authorized bank) independently.

Operations with cash currency and checks are carried out in the presence of an individual. Exchange offices, when carrying out transactions with cash and checks, are required to identify an individual who is serviced by an exchange office in accordance with paragraph 1 of Article 7 of the Federal Law "On Counteracting the Legalization (Laundering) of Proceeds from Crime and the Financing of Terrorism".

The foreign exchange market is a system of stable economic and organizational relations resulting from operations for the purchase and sale of foreign currency and various currency values.

All activities related to the circulation of currency in the banking system are regulated by the Federal Law “On currency regulation and currency control” dated December 10, 2003 No. 173-FZ and federal laws adopted in accordance with it (acts of the currency legislation of the Russian Federation).

Unlike the current Law, the principles of currency regulation and currency control are enshrined in the Federal Law.

The concept of currency legislation is revealed, which includes the Federal Law itself and federal laws adopted in accordance with it. At the same time, the bodies of currency regulation, to which the Federal Law refers the Central Bank of the Russian Federation and the Government of the Russian Federation, may issue regulatory legal acts on issues of currency regulation, but only in cases provided for by the Federal Law.
In accordance with the principles of foreign exchange regulation, if the procedure for carrying out foreign exchange operations, the procedure for using accounts are not established by the foreign exchange regulation authorities, foreign exchange operations are carried out, accounts are opened and operations on accounts are carried out without restrictions.

The federal law contains an exhaustive list of measures by which the Government of the Russian Federation and the Central Bank of the Russian Federation will regulate the implementation of foreign exchange capital movements.

The new Law does not distinguish between currency transactions into current currency transactions and currency transactions related to the movement of capital. Currency transactions are differentiated depending on the composition of their participants into transactions between residents, between residents and non-residents, between non-residents and non-residents.

There are six main types of foreign exchange operations: operations for international settlements, correspondent relations with foreign banks, operations for the placement and attraction of foreign currency by the bank, non-trading operations, conversion operations and maintaining foreign currency accounts of the clientele.

As world practice shows, in countries with a developed market, the main role is played by its wholesale link, where the exchange rate is formed. it is these exchange rates that determine prices in the retail market. Abroad, the development of foreign exchange markets, as a rule, is characterized by a trend towards increasing decentralization, which is associated with the strengthening of the role of commercial banks. It is noteworthy that in the initial phase of the development of the foreign exchange market, the relations of commercial banks with the Central Bank are closer than the relations of commercial banks with each other.

The formation of the foreign exchange market in Russia has its own specifics, consisting in maintaining a still very high degree of its centralization. This is due to the limited amount of foreign exchange resources in the country as a whole and, in particular, among authorized banks, with insufficient contacts between authorized banks, due to the fact that the system of credit relations in a centralized economy was built on a vertical principle.

Nevertheless, there is reason to believe that in the future the Russian foreign exchange market will develop in line with the main patterns that are manifested in international practice.

REFERENCES

1. Federal Law “On the Central Bank of the Russian Federation (Bank of Russia)” dated June 27, 2002

2. Federal Law “On Banks and Banking Activities” dated December 23, 2003 No. 181-FZ.

3. Federal Law “On currency regulation and currency control” dated 10.12.2003 No. 173-FZ

4. Federal Law “On Amendments to the Federal Law “On Combating the Legalization (Laundering) of Proceeds from Crime and the Financing of Terrorism” dated July 28, 2004. N 88-FZ.

5. Instruction of the Central Bank of the Russian Federation “On the procedure for opening, closing, organizing the work of exchange offices and the procedure for authorized banks to carry out certain types of banking operations and other transactions in cash foreign currency and the currency of the Russian Federation, checks (including traveller's checks), the nominal value of which is indicated in foreign currency, with the participation of individuals" dated April 28, 2004 N113-I

6. Instruction of the Bank of Russia “On the procedure for regulating the activities of banks” dated October 1, 1997 No. 1 (as amended on September 28, 2000).

7. Instruction “On Amendments to Bank of Russia Ordinance No. 623-U dated August 5, 1999 “On Additional Measures to Regulate Open Currency Positions”

8. Banks and banking operations: A textbook for universities in the specialty “Finance and credit” / E.F. Zhukov, L.M. Maksimova, O.M. Markova and others; Under. ed. E.F. Zhukov; Vseros. in absentia fin.-econ. in-t. - M .: Banks and exchanges: UNITI, 1997. - 471 p.: ill.

9. Banks and banking: Proc. allowance / Ed. I.T. Balabanova. - M., 2001. - 304s

10. Banking: Textbook / Ed. V.I. Kolesnikov, L.P. Krolivetskaya. - 4th ed., revised. and additional - M., 2001. - 464 p.

11. Banking: Textbook. Ed. IN AND. Kolesnikov. - M.: Finance and statistics, 2003.

12. Burlak G.N., Kuznetsova O.I. Foreign Exchange Techniques (Second Edition). - M.: UNITI, 2002. - 87 p.

13. Golubovich A.D. Currency transactions in commercial banks. - M.: JSC "Menatep-Inform", 1999. - 459 p.

14. Drobozina L.A. Finance. Money turnover. Credit. – M.: UNITI, 2000.

15. Zhukov E.F. General theory of money and credit. - M.: UNITI-DANA, 2001. - 181 p.

16. Zhukov E.F., Maksimova L.M., Pechnikova A.V. - M.: UNITI, 2002. - 243, 245 p.

17. Commentary on the Federal Law on currency regulation and currency control /A. D. Kulikov, N. V. Novichikhina, Yu. V. Sapozhnikova, M. Yu. Tikhomirov; Tot. ed. M. Yu. Tikhomirova. - M., 2004. -124 p.

18. Kratkova L.I. Currency non-trading operations. - M.: Finance and statistics, 2001.

19. Markova O.M., Sakharova L.S., Sidorov V.N. Commercial banks and their operations. – M.: UNITI, 1999.

20. Fundamentals of banking: Textbook / Ed. K.R. Tagirbekova-M..: Finance and statistics, 2004.

21. Collection of Legislation of the Russian Federation, 2002, No. 1 (Part 1), Art. 1, no. 44, art. 4295

22. Economic analysis of the activities of a commercial bank: Textbook for universities / Ed. L.G. Batrakova -M.: Logos, 2003.

23. Actual problems of the new currency regime // E. Smirnov. Methodological journal "International Banking Operations" No. 4/2004

24. Borodin A.F. On the role of the banking sector in ensuring sustainable economic growth // Money and credit. - 2003. - N 6. - S.15-16

25. Vernikov A.V. Private savings and foreign banks // Money and credit. - 2005. - N 2. - S.37-47.

26. Volodin FG Monetary policy of the Central Bank: structural analysis and innovation // Banking services. - 2004. - N 5. - S. 2-10

27. Ershov M. Banking system and development of the Russian economy // World economy and international relations. - 2005. - N 3. - S.28-34.

28. Ignatiev S. Monetary policy of the Central Bank of the Russian Federation // Economy of Russia - XXI century. - 2003. - N 12. - S.14-15.

29. Solntsev O.G. Features of the Russian banking system and medium-term scenarios of its development / Solntsev O.G., Khromov M.Yu. // Prob. forecasting. - 2004. - N 1. - S.55-78.

Drobozina L.A. Finance. Money turnover. Credit. – M.: UNITI, 2000.

Zhukov E.F., Maksimova L.M., Pechnikova A.V. - M.: UNITI, 2002. - 243, 245 p.

Markova O.M., Sakharova L.S., Sidorov V.N. Commercial banks and their operations. – M.: UNITI, 1999.

Banks and banking operations: A textbook for universities in the specialty “Finance and Credit” / E.F. Zhukov, L.M. Maksimova, O.M. Markova and others; Under. ed. E.F. Zhukov; Vseros. in absentia fin.-econ. in-t. - M .: Banks and exchanges: UNITI, 1997. - 471 p.: ill.

Razvletovskaya E.V., Golovina A.I., Andreeva E.A. Organization and technique of foreign trade operations. - Yekaterinburg: USUE, 2000.

Doronin I.G. Russian currency market. - M.: Finance, 2000. - 180 p.

Federal Law No. 173-FZ dated 10.12.2003 “On currency regulation and currency control”

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Chapter 8. CURRENCY OPERATIONS OF COMMERCIAL BANKS

The implementation of entrepreneurial activity without the interaction of its participants with banking institutions in modern conditions is impossible. The development of a market economy in the Russian Federation and the formation of a two-tier system in connection with this required the solution of the problem of the country's foreign exchange market, the formation of a new monetary policy, among the first tasks. Almost all operations with currency values in the territory of the Russian Federation are carried out through banks and non-bank credit organizations that have received licenses from the Central Bank of the Russian Federation (hereinafter referred to as the Central Bank of the Russian Federation) to conduct banking foreign exchange operations. Due to the specifics of their subject matter, the performance of these operations by banks requires detailed, well-thought-out legal regulation that ensures the priority of circulation and the stability of the national currency, increasing the authority of the Russian state in the system of world economic relations. The creation of an effective legal mechanism for currency regulation will significantly strengthen the economic sovereignty of the Russian Federation, increase political stability in society and, accordingly, the role and influence of Russia in international relations.
Giving a general assessment of the currency legislation of the Russian Federation, it should be noted that it is in the stage of dynamic development, and this objectively determines its lack of systematization, difficulty for perception, lack of definition of a number of key concepts in the field of currency relations. Hence, the need for further development and improvement of legal norms regulating the operations of banks with currency values is obvious.

1. Goals and limits of legal regulation of foreign exchange transactions
Currency legislation and banking legal relations
Goals and principles of legal regulation of foreign exchange transactions
Sources of currency legislation
2. Basic concepts of currency relations
3. Commercial bank as a participant in foreign exchange transactions
Features of the position of the bank in the foreign exchange market
Licensing of banking foreign exchange operations
4. Foreign exchange operations of commercial banks
The subject composition of foreign exchange operations of banks
Types of currency transactions
5. State regulation of foreign exchange operations of authorized banks
Monetary policy
The economic impact of the state on foreign exchange relations
The meaning and legal nature of currency control

1. Goals and limits of legal regulation of foreign exchange transactions

The foreign exchange operations of commercial banks are assigned a significant role in the current legislation, while there is a close relationship between banking and foreign exchange legislation.

Currency legislation and banking legal relations

In accordance with Art. 5 of the Federal Law “On Banks and Banking Activity”, which contains a list of banking operations and other transactions of credit institutions, all banking operations and other transactions can be carried out both in rubles and in foreign currency with the appropriate license from the Bank of Russia. Currency legislation "determines the principles for the implementation of currency transactions in the Russian Federation, the powers and functions of the currency regulation and currency control bodies, the rights and obligations of legal entities and individuals in relation to the possession, use and disposal of currency values, responsibility for violation of currency legislation" .
The question of the place of currency legislation in the system of law remains debatable. Textbook "Financial Law" edited by prof. N.I. Khimicheva contains the chapter “Legal foundations of currency regulation and currency control”, which reveals the concept of currency and currency values, the concept and content of currency regulation, the essence of currency control. The inclusion of currency legislation in the sphere of financial law is justified in relation to those social relations that are the subject of financial law. According to the definition given in the above textbook, the subject of financial law is social relations that arise in the process of formation, distribution and use of monetary funds (financial resources) of the state and local governments necessary for the implementation of their tasks. B.C. Martemyanov in the second volume of the course of lectures "Economic Law" considered currency regulation as one of the forms of state influence on participants in foreign economic activity in order to protect the public interests of the state. Thus, representatives of the school of economic law consider relations regarding currency regulation as an integral part of the subject matter of economic law.
We believe that currency transactions, including currency transactions of banks, as an independent activity carried out at one's own risk in relation to currency values, aimed at making profit, is also included in the subject matter of entrepreneurial (economic) law. Public relations regulated by the norms of currency legislation are not limited to relations that arise in the process of formation, distribution and use of monetary funds (financial resources) of the state and local governments in order to implement their tasks (financial legal relations), and relations that arise in the process of implementing entrepreneurial activities, and other closely related relations, including non-commercial relations, as well as relations on state regulation of the economy in order to ensure the interests of the state and society. The circle of social relations regulated by the norms of currency legislation also includes a number of property relations based on equality, autonomy of will and property independence of their participants, that is, relations that are the subject of civil law.
From the foregoing, it can be seen that social relations, regulated by the norms of currency legislation, are mainly included in the subject of three branches of law: financial, business (economic) and civil. Thus, currency legislation is a complex branch of legislation that intersects in a certain part with banking, but is not completely absorbed by it. To the extent that currency legislation regulates the business activities of banks, it is part of business law.
Revealing the legal nature of the norms governing the foreign exchange operations of commercial banks, determining their place in sectoral legislation and, accordingly, in the system of law is not only of great theoretical interest, but also of great practical importance. The optimal combination in legislation and law enforcement practice of methods and techniques of legal regulation inherent in various branches of law, in relation to public relations regulated by the norms of banking and currency legislation, will create favorable conditions for solving a number of problems in the field of banking.

Goals and principles of legal regulation of foreign exchange transactions

Determination of the principles for the implementation of currency transactions in the Russian Federation, the powers and functions of bodies and agents of currency control, the rights and obligations of legal entities and individuals in relation to the possession, use and disposal of currency values, responsibility for violation of currency legislation and, as a result, the creation of an effective mechanism for influencing participants currency transactions is the purpose of their legal regulation.
The creation of an effective legal mechanism for currency regulation should ensure the priority of circulation of the national currency of the Russian Federation in relation to the currencies of foreign states on the territory of Russia, and increase the convertibility of the ruble. The creation of priority conditions for the circulation of the ruble within the national borders of Russia is a necessary prerequisite for increasing its convertibility, first in the domestic foreign exchange market, and then for the entry of the Russian currency into international foreign exchange markets.
The creation of a legal mechanism for currency regulation involves the legislative definition of the principles of such regulation, the legal regime of currency values, the legal status of participants in currency relations, including a clear framework for the competence of bodies and agents of currency control, establishing the responsibility of participants in currency relations for violation of currency legislation.
Legal regulation of foreign exchange operations means the determination by the state of the limits and procedure for the activities of participants in foreign exchange relations. The following general principles of legal regulation of foreign exchange transactions can be distinguished (Fig. 1):

Rice. 1. Principles of legal regulation of foreign exchange transactions

The first principle is due to the economic role of an authorized bank in the foreign exchange market and the law entrusting it with the functions of an agent of foreign exchange control. With regard to the most authorized bank, this principle has a specific refraction. Since the authorized bank itself is an authorized entity in the field of circulation of currency values, mediating the foreign exchange market for other participants in foreign exchange transactions, it does not need to carry out foreign exchange transactions through another authorized bank.
The second principle points to the fundamental rule for the implementation of foreign exchange transactions, which expresses the most significant feature of foreign exchange regulation.
It corresponds to a certain method of legal regulation of currency relations - imperative.
The third principle is predetermined by the need to strictly observe the ban on currency transactions in violation of the procedure established by the current legislation, the need to identify violators of currency legislation and bring them to justice.
These principles of legal regulation of foreign exchange transactions cover the entire array of foreign exchange legislation and are aimed at realizing its goals, show the main directions of regulatory regulation of the activities of participants in foreign exchange relations.

Sources of currency legislation

The legal regulation of the circulation of currency values on the territory of the Russian Federation has a complex multifaceted character. Currency legislation belongs to the jurisdiction of the Russian Federation, which is organically connected with the fact that it is in charge of establishing the legal foundations of the single market, financial, credit, customs regulation, foreign economic relations of the Russian Federation (clause “g” of article 71 of the Constitution of the Russian Federation).
Regulations governing the foreign exchange operations of commercial banks can be divided according to the form of the source of legal norms into federal laws, decrees of the President of the Russian Federation, decrees of the Government of the Russian Federation, instructions, instructions, regulations, letters and telegrams of a regulatory nature of the authorized bodies of currency control, in particular the Central Bank of the Russian Federation , the State Customs Committee of the Russian Federation, etc.

Rice. 2. Delimitation of competence on issues of currency regulation

A number of general provisions of the currency legislation has found its consolidation in the Civil Code of the Russian Federation. So, according to Art. 140 cases, the procedure and conditions for the use of foreign currency on the territory of the Russian Federation are determined by law or in the manner prescribed by it. In accordance with paragraph 3 of Art. 317, the use of foreign currency, as well as payment documents in foreign currency, when making settlements on the territory of the Russian Federation for obligations is allowed in cases, in the manner and under the conditions determined by law or in the manner prescribed by it, and in accordance with Art. 141 The procedure for making transactions with currency values is determined by the law on currency regulation and currency control. The Law of the Russian Federation “On currency regulation and currency control” delimited the competence of state bodies in the field of regulation of currency transactions. This distinction can be represented in the form of the following diagram (Fig. 2).
In Art. 12 of the Law of the Russian Federation “On currency regulation and currency control” provides for the right of currency control bodies, within their competence, to issue regulations binding on all residents and non-residents in the Russian Federation. These acts must be adopted by the currency control bodies in strict accordance with the said Law of the Russian Federation, other laws affecting the conduct of currency transactions, and within the competence of the relevant currency control body. Currently, the currency legislation covers by its regulation all the activities of residents and non-residents regarding currency values in Russia, as well as operations of non-residents with the currency of the Russian Federation.
With a certain degree of conventionality, the legislation regulating the foreign exchange operations of commercial banks can be divided into acts of banking and acts of foreign exchange legislation (Fig. 3).

Rice. 3 The system of normative acts regulating the foreign exchange operations of commercial banks

According to the direction of the legal impact on the activities of banks in the field of foreign exchange relations, normative acts regulating general and special issues of foreign exchange regulation are singled out.
The first type of regulations addresses the general issues of currency relations: the principles of legal regulation, the legal status of their subjects, objects, the procedure for exercising currency control. This type includes the Law of the Russian Federation “On currency regulation and currency control”, the Basic provisions on the regulation of currency transactions on the territory of the USSR, approved by the Letter of the State Bank of the USSR dated May 24, 1991 No. 352. An important role in the development of Russian currency legislation was played by the Decree of the President of the RSFSR dated November 15, 1991 "On the liberalization of foreign economic activity on the territory of the RSFSR", allowing all legal entities to have foreign currency accounts in authorized banks.
Regulations of the Central Bank of the Russian Federation define a number of general conditions for commercial banks to carry out foreign exchange transactions, which, in particular, include the conditions for licensing banking foreign exchange operations and for authorized banks to comply with the limits of an open foreign exchange position. Thus, the procedure for licensing the banking activities of newly created credit institutions and expanding the activities of a credit institution by obtaining additional licenses is determined by Instruction of the Bank of Russia dated July 23, 1998 No. 75-I “On the Procedure for the Application of Federal Laws Regulating the Procedure for Registering Credit Institutions and Licensing Banking Activities” . Bank of Russia Instruction No. 41, dated May 22, 1996, “On Setting Limits on an Open Foreign Exchange Position and Monitoring Their Compliance by Authorized Banks of the Russian Federation” defines the procedure for maintaining an open foreign exchange position by authorized banks.
The second type is normative acts regulating the procedure for authorized banks to carry out certain types of foreign exchange transactions and the procedure for their implementation of foreign exchange control over activities related to foreign exchange values. For example, this type of normative acts regulates the regime of foreign currency accounts, the activities of exchange offices, the procedure for the import into and export from the Russian Federation of foreign currency and securities in foreign currency by authorized banks.
Currency legislation is largely overloaded with numerous and rather voluminous regulations. At the same time, many issues that are within the scope of regulation of currency legislation have not found their logical resolution in it. In connection with the existing trend towards the growth of the array of regulatory framework, the subject of which is currency regulation and currency control, it should be noted that currency legislation needs more perfect codification. Based on this, the point of view on the existing need for the adoption of the Currency Code of the Russian Federation, which would make it possible to more clearly define the legal status of persons engaged in activities, including business, with currency values, does not seem to be without certain meaning, to avoid duplication of legal regulation of the same relations. and the uncertainty of the legal regulation of others. However, since Art. 141 of the Civil Code of the Russian Federation there is a reference rule to the “law on currency regulation and currency control”, as an act establishing the procedure for transactions with currency values, and also taking into account the fact that currency legislation is a complex branch of legislation, we believe the most appropriate solution to this problem by adopting a new version of the current Law of the Russian Federation “On currency regulation and currency control”.

INTRODUCTION 3

CHAPTERI

Theoretical foundations of foreign exchange transactions 4

Legal basis for foreign exchange transactions 7

CHAPTERII. CURRENCY OPERATIONS IN A COMMERCIAL BANK

Economic characteristics of the bank 9

Analysis of foreign exchange transactions 10

CONCLUSIONS AND SUGGESTIONS 14

REFERENCES 16

INTRODUCTION

The modern foreign exchange market is a complex and dynamic economic system that operates within the entire world economy. The foreign exchange market has been continuously developing, becoming more complex and adapting to new conditions, has gone from local centers for trading bills in foreign currencies to actually the only, genuine international market, the economic role of which can hardly be overestimated. Along with the development and improvement of the foreign exchange market, foreign exchange transactions developed and improved, new types of them appeared, and the technique for conducting them improved.

In this regard, it became necessary to study and use the experience of banks in the foreign exchange markets and the mechanism for conducting foreign exchange transactions on it.

Expanding international relations, the increasing internationalization of economic life causes an objective need to study the exchange of some national monetary units for others.

The realization of this need occurs through a special foreign exchange market, where, under the influence of supply and demand, the exchange rate is spontaneously formed, and foreign exchange operations sometimes become one of the main operations of commercial banks.

Based on the relevance of the topic, the purpose of this thesis is to analyze the conduct of foreign exchange transactions by commercial banks.

The object of the study is Alfabank OJSC.

To achieve the above goal, the following tasks were set:

to study the theoretical aspects of conducting foreign exchange transactions by commercial banks;

analyze the currency transactions of Alfabank OJSC;

propose a set of measures to improve existing and introduce new currency transactions.

CHAPTERI. CURRENCY OPERATIONS IN COMMERCIAL BANKS

1.1 Theoretical foundations of foreign exchange transactions.

Currency transactions are subject to state and banking supervision and control. In countries with partially convertible currencies and restrictions on financial transactions, the size of the foreign exchange position of banks relative to the national currency is one of the objects of foreign exchange control.

Banks carry out their activities in the foreign exchange market by conducting foreign exchange transactions. Currency refers to banknotes of foreign states, as well as credit and payment documents expressed in foreign monetary units and used in international settlements. Foreign currency is funds in the monetary units of foreign states and international units of account, which are on accounts and deposits.

The classification of banking foreign exchange operations can be carried out both according to criteria common to all banking operations (passive, active operations), and according to special classification features that are peculiar only to foreign exchange operations. The fundamental version of the classification of foreign exchange transactions follows from the law of the Russian Federation "On foreign exchange regulation and foreign exchange control" It is as follows: all operations with foreign currency and securities in foreign currency are divided into:

current currency transactions:

transfers to the Russian Federation and from the country of foreign currency for settlements without deferred payment for the export and import of goods, works, services, as well as for settlements related to crediting export-import operations for a period not exceeding 180 days;

obtaining and providing financial loans for a period not exceeding 180 days;

transfers to the Russian Federation and from the country of interest, dividends and other income on deposits, investments, loans and other transactions related to the movement of capital;

non-commercial transfers in the Russian Federation from the country (salaries, pensions, alimony, etc.).

currency transactions related to the movement of capital:

direct investment, i.e. investments in the authorized capital of the enterprise in order to generate income and obtain rights to participate in the management of the enterprise;

portfolio investment, i.e. purchase of securities;

transfers in payment for the ownership of buildings, structures and other property;

granting and receiving a deferred payment for a period of more than 180 days for the export and import of goods, works, services;

providing and receiving financial loans for a period of more than 180 days;

all other currency transactions that are not current.

Depending on the terms, currency transactions are divided into cash and urgent.

Among cash foreign exchange operations, there are spot operations (spot), as well as such operations as overnight, tomorrow/next (tomorrow/next) and day-to-day swap (day-to-day swap), which are used by banks to manage current currency positions.

Urgent transactions are usually divided into conversion, insurance and speculative. Forward transactions also include "forward" (forward), "option" (option), "swap" (swap).

Currently, commercial banks offer a wide range of currency-related services.

Currency operations of commercial banks are divided into several types (services):

1. Operations for international settlements. These operations are related to the export and import of goods and services. In foreign trade, such forms of settlements as a documentary letter of credit, documentary collection, bank transfer are used.

2. Opening and maintaining foreign currency accounts of the clientele. This operation includes the following types:

opening foreign currency accounts for legal entities and individuals;

accrual of interest on account balances;

provision of overdrafts (special clients by decision of the bank's management);

provision of statements as the transaction is completed;

registration of an invoice archive for any period of time;

execution of operations, by order of clients, in relation to funds in their foreign currency accounts;

control over export-import operations.

3. Establishment of correspondent relations with foreign banks. This operation is a necessary condition for conducting bank accounts. The decision to establish correspondent relations by another foreign bank should be based on the implementation of regular export-import operations of the clientele. For international settlements, the bank opens "Nostro" and "Lorro" accounts in foreign banks and at home. A Nostro account is a current account opened in the name of a commercial bank with a correspondent bank. A Lorro account is a current account opened with a commercial bank in the name of a correspondent bank.

4. Non-trading operations of a commercial bank. Non-trading transactions include customer service operations that are not related to the settlement of exports and imports of goods and services of bank customers with a movement of capital. Non-trading operations, in the context of certain types, have become widespread in order to provide customers with a wider range of banking services, which plays an important role in the competitive struggle of commercial banks to attract clients.

5. Conversion operations. Conversion transactions are transactions for the purchase and sale of cash and non-cash foreign currency (including those with limited conversion) against cash and non-cash rubles of the Russian Federation.

These include:

A transaction of the "TODAY" type is an operation in which the value date coincides with the day the transaction was concluded.

A transaction of the "TOMORROW" type is a transaction with a value date on the banking business day following the conclusion day.

A spot transaction is an operation carried out at the rate agreed today.

The operation "forward" (terms) is a contract that is concluded at the present moment in time for the purchase of one currency in exchange for another at a stipulated rate.

In turn, the "forward" operation is divided into:

a) transactions with an "outrider" - with the condition of currency delivery on a certain date;

b) transactions with an "option" - with the condition of a non-fixed date of delivery of the currency.

"Swap" transaction - currency transactions that combine the purchase or sale of a currency on the terms of a cash "spot" transaction with the simultaneous sale or purchase of the same currency for a period at the "forward" rate.

Swap transactions include several varieties:

a) "report" transaction - sale of foreign currency on "spot" terms with its simultaneous purchase on "forward" terms;

b) "dereport" transaction - purchase of foreign currency on "spot" terms and its simultaneous sale on "forward" terms.

Currently, there is a purchase and sale on a forward basis, as well as a purchase and sale of futures contracts.

Currency arbitrage is the implementation of operations for the purchase of foreign currency with its simultaneous sale in order to profit from the difference in exchange rates.

6. Operations to attract and place foreign currency. These operations include the following types:

attraction of deposits:

issuance of loans:

placement of loans in the interbank market.

These operations are the main ones for commercial banks of the Russian Federation both in terms of profitability and importance in servicing bank customers.

1. Essence and classification of currency transactions

3. The main directions of the bank's foreign exchange activities

10.1. Essence and classification of currency transactions

Currency transactions in the broadest sense of the word are a series of sequential actions for the execution and payment of documents and transactions in foreign currency, in the narrow sense of the word, these are transactions for the purchase and sale of foreign currency.

Currency is the banknotes of foreign countries.

Currency values include: foreign currency and foreign securities.

The subjects of currency relations are legal entities and individuals (residents, non-residents) carrying out currency transactions and settlements, as well as intermediaries.

Foreign exchange transactions include:

Acquisition by a resident of currency values, their use as a means of payment;

Import and export from the customs territory of the Russian Federation of currency values;

Transfer of foreign currency, currency to and from Russia.

Operations with foreign currency are carried out in accordance with the Law of the Russian Federation No. 3615G "On currency regulation and currency control", decrees of the President of the Russian Federation, resolutions of the Government of the Russian Federation, regulatory documents 111B of the Russian Federation and the Ministry of Finance of Russia.

Operations with foreign currency and foreign currency securities are divided into current foreign exchange operations and foreign exchange operations related to the movement of capital.

Current transactions are carried out within 180 days and are carried out without restrictions. Above this period, there are operations related to the movement of capital, which are characterized by a higher risk.

Their restrictions have the following purposes:

Prevention of a significant reduction in gold and foreign exchange reserves;

Maintaining the stability of Russia's balance of payments.

Current foreign exchange transactions include the following :

1.Currency transactions between residents involve:

Payments in duty-free shops;

Settlements in the sale of goods and the provision of services to passengers;

Operations between commission agents (agents, attorneys) and commitents (principals, principals);

Transfer of goods, performance of work, provision of services;

Transfer of information and results of intellectual activity;

Settlements under contracts of transport expedition, transportation and chartering (charter);

Settlements for the transportation of goods exported from the Russian Federation or imported into the Russian Federation;

Settlements for the transit transportation of goods through the territory of the Russian Federation;

Settlements under cargo insurance contracts;

Purchase and sale of currency;

Operations of legal entities with external securities;

Settlements in the currency of the Russian Federation;

Mandatory sale of part of export earnings;

Mandatory payments (taxes, fees and other payments) to the federal budget, budget;

Transfers for goods and services (export, import);

Transactions between authorized banks, made by them on their own behalf and at their own expense.

2.Currency transactions between residents and authorized banks involve:

Obtaining and repaying loans and borrowings, paying interest and penalties;

Depositing residents' funds to bank accounts and receiving residents' funds from bank accounts;

Bank guarantees, as well as the fulfillment by residents of obligations under guarantee and pledge agreements;

Acquisition by residents of bills of exchange from authorized banks, presentation of them for payment, receipt of payment, collection of penalties;

I will buy the sale by individuals of cash and non-cash foreign currency and checks;

Exchange, replacement of banknotes of a foreign state;

Acceptance for sending for collection to banks outside the territory of the Russian Federation of cash foreign currency and checks not for the purpose of carrying out entrepreneurial activities by individuals;

Payment to authorized banks, commission.

3.Currency transactions between non-residents involve:

Foreign currency transfers from accounts (from deposits);

Transactions with internal securities in the territory of the Russian Federation using a special account when they are performed;

Opening special bank accounts (bank deposits).

Currency transactions related to the movement of capital include transactions between residents and non-residents:

Settlements and transfers;

Settlements and transfers on the terms of residents providing non-residents with a deferred payment for a period of more than 180 calendar days in connection with the implementation of foreign trade activities;

Settlements and transfers when residents provide commercial loans to non-residents for a period of more than 180 calendar days;

Settlements and transfers when residents and non-residents provide commercial loans for a period of more than three years in the form of advance payment when importing goods;

Settlements and transfers when residents acquire shares, deposits, shares in the property of legal entities from non-residents;

Making contributions by residents under simple partnership agreements with non-residents;

Opening and use of special accounts by a resident.

By subjects, currency transactions are divided into transactions with residents and non-residents and transactions regulated by the Bank of Russia and authorized banks.

Authorized banks have a general license and can conduct and control the following foreign exchange transactions:

Attraction of funds of individuals and legal entities in deposits;

Placement of individuals and legal entities involved in deposits on their own behalf and at their own expense;

Opening and maintaining bank accounts of individuals and legal entities;

Settlements on behalf of individuals and legal entities, including authorized correspondent banks and foreign banks, on their bank accounts;

Collection of funds, bills of exchange, payment and settlement documents and cash services for individuals and legal entities;

Purchase and sale of foreign currency in cash and non-cash forms;

Issuance of bank guarantees;

Implementation of money transfers on behalf of individuals without opening bank accounts.

According to the intended purpose, all types of foreign exchange transactions are divided into commodity and non-commodity.

Trade transactions include :

Payments for goods and services;

Purchase and sale of currency values by legal entities and banks (terms and cash transactions);

Banking and commercial lending for export-import operations.

Non-commodity (non-trading) transactions include all transactions and settlements of individuals for the purchase and sale of cash currency, traveller's checks and letters of credit, plastic cards, which are not of an entrepreneurial nature.

The nature of foreign exchange transactions can be active and passive.

Active foreign exchange transactions include:

Lending to participants in foreign economic activity;

Providing loans to banks;

Conversion transactions ("swap", "spot", "forward");

Currency arbitrage;

Operations with cash currency.

From passive foreign exchange transactions, one can single out :

Opening and maintenance of current accounts in foreign currency;

Attraction of foreign currency deposits;

Received foreign currency loans;

Issue of securities in foreign currency.

The scale of foreign exchange transactions are large and small. Major foreign exchange transactions are regulated by law, for example, limits are set on open foreign exchange transactions (10% for a separate currency and 20% for the bank's foreign exchange position in relation to capital); cash export limit, transfer limit, etc.

According to the form, foreign exchange operations distinguish between cash foreign exchange (currency exchange operations and cash transactions) and non-cash foreign exchange operations (all other operations).

According to the impact on the open foreign exchange position (ORP), there are foreign exchange transactions that affect and do not affect the ORP operations.

The open currency position is the difference between the balances of funds in foreign currencies, which form quantitatively non-matching assets, and liabilities, reflecting the requirements to receive and obligations to deliver funds in these currencies, both completed by settlements in the present (i.e., as of the reporting date) and expiring in the future (i.e. after the reporting date).

The Bank of Russia sets limits on open currency positions, i.e. quantitative restrictions on the ratio of total open currency positions and own funds (capital) of authorized banks.

10.2. Licensing of foreign exchange transactions

A credit institution performs foreign exchange transactions on the basis of a banking license issued by the Central Bank of the Russian Federation.

The license contains an indication of one of the types of licenses, a list of banking operations, the right to carry out which is granted to the credit institution, the date of issue and the number of the license. Bank of Russia:

Takes a decision on the state registration of newly created credit institutions;

Carries out interaction on issues of state registration of credit institutions with the Ministry of the Russian Federation for taxes and fees;

Issues licenses to credit institutions to carry out banking and foreign exchange operations or to expand them (licenses); maintains a register of issued licenses and a book of state registration of credit institutions for the purpose of exercising control and supervisory functions.

The Bank may be issued licenses for currency transactions of the following types :

1) a license to carry out banking operations with funds in rubles and foreign currency (without the right to attract funds from individuals to deposits).

If it is available, the bank has the right to establish correspondent relations with an unlimited number of Foreign banks, as well as to carry out the following currency transactions:

Attraction of funds of legal entities in deposits (on demand and for a certain period),

Placement of funds attracted in deposits (on demand and for a certain period) of legal entities on their own behalf and at their own expense,

Opening and maintenance of bank accounts for legal entities,

Settlements on behalf of legal entities, incl. correspondent banks, according to their bank accounts,

To attract deposits of individuals' funds in rubles and foreign currency;

All types of banking foreign exchange transactions. The authorization in this case contains a general license. At the same time, the bank has the right to create branches in the territories of foreign states and (or) acquire shares (stakes) in the authorized capital of foreign banks.

10.4. Regulation of foreign exchange operations of commercial banks

Currency regulation is the activity of the state aimed at regulating settlements and the procedure for making transactions with currency values.

Currency restrictions are a legislative or administrative prohibition, limitation and regulation of operations of residents and non-residents with currency and other currency values. Currency restrictions - one of the forms of monetary policy. They are fixed by the currency legislation of the country, are the object of interstate regulation, mainly through the IMF.

Ensuring by the state the protection of the rights and economic interests of residents and non-residents in the implementation of foreign exchange transactions.

The basis of the currency legislation of the Russian Federation is the Law on currency regulation and currency control. The law defines the principles for carrying out foreign exchange transactions in the Russian Federation, the rights and obligations of legal entities and individuals in relation to the possession, use and disposal of foreign exchange valuables, and liability for violation of foreign exchange legislation.

Of great importance in the field of currency regulation are the regulations of the Bank of Russia.

Bank of Russia:

Determines the scope and procedure for the circulation of foreign currency and securities in foreign currency in Russia;

Publishes regulations that are binding on residents and non-residents;

Conducts all types of foreign exchange transactions;

Establishes the rules for residents and non-residents in the Russian Federation to conduct transactions with foreign currency and securities in foreign currency, as well as the rules for non-residents in the Russian Federation to conduct transactions with the currency of the Russian Federation;

Establishes general rules for issuing licenses to banks and other credit institutions to carry out foreign exchange transactions and issues such licenses;

- establishes uniform forms of accounting, reporting, documentation and statistics of foreign exchange transactions, including for authorized banks, as well as the procedure and terms for their submission.