The convenience of using OBR transactions for credit institutions is the possibility of early sale of securities in the secondary market, as well as the possibility of using them as collateral both for interbank lending transactions and for Bank of Russia liquidity provision transactions.

OBRs are included in the Lombard List of the Bank of Russia and are accepted as collateral for Bank of Russia loans secured by pledge (blocking) of securities and direct REPO operations of the Bank of Russia.

OBRs are issued in the form of zero-coupon discount bonds, which provides for the sale of bonds to holders at a price less than face value, followed by the redemption of bonds at face value in the absence of coupon payments to holders during the circulation period of the issue.

The right to issue by the Bank of Russia its own bonds in order to implement monetary policy is established by Art. 44 of the Federal Law of July 10, 2002 No. 86-FZ "On the Central Bank of the Russian Federation (Bank of Russia)". The issue of OBR is carried out in accordance with Art. 27.5-1 of Federal Law No. 39-FZ of April 22, 1996 “On the Securities Market” and Bank of Russia Regulation No. 284-P of March 29, 2006 “On the Procedure for Issuing Bank of Russia Bonds”.

ESSAY

Topic : "Operations of the Central Bank on the open market"

INTRODUCTION - 3

1. CENTRAL BANK: CONCEPT, EVOLUTION,

STRUCTURE AND FUNCTION - 4

2. MONETARY POLICY OF THE BANK OF RUSSIA - 12

3. OPERATIONS OF THE CENTRAL BANK IN THE OPEN

MARKET - 14

CONCLUSION - 23

LITERATURE - 24

INTRODUCTION

The formation of a modern model of the Central Bank of Russia is associated with a specific definition of the functions of central banks in the economy of the state.

Today, even the smallest country has its own central bank. It performs two main tasks.

The first task is that the central bank must ensure the stability of the functioning of the banking and financial systems.

The second task of the Central Bank is to implement such a monetary policy, in the implementation of which, through control over the volume of the money supply, a low level of inflation was ensured.

The most important method of state regulation of social reproduction in order to ensure the most favorable conditions for the development of a market economy is the monetary policy of the Central Bank. With the help of credit regulation, the state seeks to mitigate economic crises and curb inflation.

In order to maintain market conditions, the state uses loans to stimulate investment in various sectors of the national economy.

The monopoly position of the Central Bank in the general economic circulation of money makes it possible for him to keep money circulation under constant control. Banknotes of the Central Bank retain their key role only on the condition that their number is limited.

The successful fulfillment of the tasks and functions assigned to the Bank of Russia requires that it be independent of state representative and executive authorities, local governments, in resolving issues within its competence.

2. CENTRAL BANK: CONCEPT, EVOLUTION,

STRUCTURE AND FUNCTION

The history of the first state bank of Russia begins in the 21st century. In 1769, the first banknote banks were created in Moscow and St. Petersburg, which in 1786 were transformed into a single State banknote bank. The main task of the new bank was to finance government spending through the issuance of paper money, called banknotes.

According to the charter of 1860, the management of all operations was assigned to the Board of the bank, and according to the charter of 1894, the State Bank was personally subordinate to the Minister of Finance. The management of the bank was entrusted to the Council of the bank and the Governor of the bank.

By a decree of the Soviet government of December 14, 1917, on the nationalization of banks, banking was declared a state monopoly, mortgage banks were liquidated, joint-stock and private banks, and then other credit institutions were attached to the State Bank, which became known as the People's Bank of the RSFSR, which ceased to exist January 19, 1920 and in accordance with the decree of the Council of People's Commissars was transformed into the Central Budgetary and Accounting Department under the jurisdiction of Narkomfin.

However, the transition to a new economic policy has already led to a partial restoration of the credit and banking system. So October 3, 1921. The Decree of the Council of People's Commissars and the resolution of the All-Russian Central Executive Committee of October 10, 1921 were adopted. on the creation of the State Bank of the RSFSR.

Subsequently, a number of transformations of the credit and banking system were carried out, which were reduced to structural changes.

According to Article 6 of the Constitution of the USSR (1936), banks were the property of the state and were completely dependent on state authorities.

The beginning of radical transformations was marked by the Decree of the Central Committee of the CPSU and the Council of Ministers of the USSR dated July 17, 1987 No. 821 "On improving the system of banks in the country and strengthening their impact on improving the efficiency of the economy."

A new system of banks was created, the main directions and areas of their activity were determined. The system included: Vneshtorgbank of the USSR, Promstroybank of the USSR, Agroprombank of the USSR, Zhilsotsbank of the USSR, Sberbank of the USSR and the State Bank of the USSR (Gosbank of the USSR), which turned into a single emission, cash and settlement center of the country, organizer and coordinator of credit relations in the national economy.

The last step in the transition to a new two-tier banking system was the adoption by the Supreme Soviet of the USSR in December 1990 of the Law "On Banks and Banking Activity" and the "Law on the State Bank of the USSR." However, these laws did not have time to have a real impact on banking activities in the country. In contrast, similar laws adopted by the Supreme Soviet of the RSFSR paved the way for the development of a developed two-tier banking system in Russia (Central Bank - commercial banks).

Today, the principles of organization and activities of the Central Bank of the Russian Federation (Bank of Russia), its status, tasks, functions, powers are determined by the Constitution of the Russian Federation, the Law on the Central Bank and other federal laws.

concept Central bank began to be used in connection with the expansion of the functions of banks.

Location of the Central Bank of Russia - Moscow.

The Bank of Russia forms a single centralized system with a vertical management structure.

The Central Bank of Russia carries out its expenses at the expense of its own income, is not registered with the tax authorities, is a legal entity, has a seal with the image of the State Emblem of the Russian Federation and its name.

The state is not liable for the obligations of the Bank of Russia, and the Bank of Russia - for the obligations of the state, if they have not assumed such obligations or unless otherwise provided by federal laws.

The system of the Central Bank of the Russian Federation includes the central office, territorial offices, cash settlement centers, computer centers, educational institutions and other enterprises, institutions and organizations, including security units and the Russian Collection Association, necessary for the implementation of the bank's activities.

In accordance with Article 2 of the Law, the authorized capital and other property of the CBR are federal property. In accordance with the purposes and in the manner established by this Federal Law, the Bank of Russia exercises the authority to own, use and dispose of the property of the Bank of Russia. Seizure and encumbrance of property of the Bank of Russia without the consent of the Bank of Russia shall not be allowed.

The supreme body of the Central Bank of Russia is the Board of Directors - a collegiate body that determines the main areas of activity of the Bank of Russia and exercises leadership and management of the Bank of Russia.

The Board of Directors performs the following functions :

1) in cooperation with the Government of the Russian Federation develops and ensures the implementation of the main directions of the unified state monetary policy;

2) approve the annual report of the Bank of Russia and submit it to the State Duma;

3) considers and approves the estimate of expenses of the Bank of Russia for the next year, as well as expenses incurred that are not provided for in the estimate;

4) determine the structure of the Bank of Russia;

5) makes decisions:

On the creation and liquidation of institutions and organizations of the Bank of Russia;

On the establishment of mandatory standards for credit institutions;

On the amount of reserve requirements;

On changes in interest rates of the Bank of Russia;

On determining the limits of operations on the open market;

On participation in international organizations;

On participation in the capital of organizations that ensure the activities of the Bank of Russia, its institutions, organizations and employees;

On the purchase and sale of real estate to ensure the activities of the Bank of Russia, its institutions, organizations and employees;

On the application of direct quantitative restrictions;

On the procedure for the formation of reserves by credit institutions;

6) approves the internal structure of the Bank of Russia;

7) determine the conditions for the admission of foreign capital to the banking system of the Russian Federation in accordance with federal laws and other functions in accordance with its competence.

The main objectives of the activities of the Central Bank of the Russian Federation are (Article 3 of the Law):

Protecting and ensuring the stability of the ruble, including its purchasing power and exchange rate against foreign currencies;

Development and strengthening of the banking system of the Russian Federation;

Ensuring the efficient and uninterrupted functioning of the settlement system.

Making a profit is not the purpose of the Bank of Russia.

The main tasks of the CBR are the regulation of monetary circulation, the implementation of a unified monetary policy, the protection of the interests of depositors, banks, supervision of the activities of commercial banks and other credit institutions, the implementation of operations for foreign economic activity.

In addition to the above goals and objectives, the Central Bank of Russia represents the interests of the Russian Federation in relations with the central banks of foreign states, as well as in international banks and other international monetary and financial organizations.

In accordance with the current legislation of the Russian Federation:

The Bank of Russia is accountable to the State Duma of the Federal Assembly of the Russian Federation. Accountability of the Bank of Russia to the State Duma means:

Appointment and dismissal by the State Duma on the proposal of the President of the Russian Federation of the Chairman of the Bank of Russia;

Appointment and dismissal by the State Duma of members of the Board of Directors of the Bank of Russia (hereinafter referred to as the Board of Directors);

Submission by the Bank of Russia to the State Duma for consideration of the annual report, as well as the auditor's report;

Determination by the State Duma of an audit firm to conduct an audit of the Bank of Russia;

Holding parliamentary hearings on the activities of the Bank of Russia with the participation of its representatives, etc.

Regarding the economy of the Russian Federation, in accordance with Article 4 of the Law, the main functions of the Central Bank of the Russian Federation are:

1) in cooperation with the Government of the Russian Federation, develop and implement a unified state monetary policy aimed at protecting and ensuring the stability of the ruble;

2) monopoly issues cash and organizes its circulation;

3) is a lender of last resort for credit institutions, organizes a refinancing system;

4) establishes the rules for making settlements in the Russian Federation;

5) establishes the rules for conducting banking operations, accounting and reporting for the banking system;

6) carry out state registration of credit organizations; issues and revokes licenses of credit organizations and organizations involved in their audit;

7) exercise supervision over the activities of credit institutions;

8) register the issue of securities by credit institutions in accordance with federal laws;

9) carries out independently or on behalf of the Government of the Russian Federation all types of banking operations necessary to fulfill the main tasks of the Bank of Russia;

10) carry out currency regulation, including operations for the purchase and sale of foreign currency; determines the procedure for making settlements with foreign states;

11) organize and carry out currency control both directly and through authorized banks in accordance with the legislation of the Russian Federation;

12) takes part in the development of the forecast of the balance of payments of the Russian Federation and organizes the compilation of the balance of payments of the Russian Federation;

13) in order to carry out these functions, analyze and forecast the state of the economy of the Russian Federation as a whole and by region, primarily monetary, monetary, financial and price relations; publishes relevant materials and statistical data;

14) in order to implement the functions assigned to it, the CBR participates in the development of the economic policy of the Government of the Russian Federation.

An important link in the banking system of the Russian Federation is cash settlement center.

The cash settlement center (hereinafter referred to as the RCC) is a structural subdivision of the Main Department of the Bank of Russia for the republic that is part of the Russian Federation, the autonomous region, the autonomous district, the territory, the region, the cities of Moscow and St. Petersburg.

The creation of the RCC, its reorganization and liquidation are carried out with the permission of the Bank of Russia on the basis of the order of the head of the relevant Main Department. Depending on the number of organizations served, the level of automation, the volume of transactions, communication conditions, territorial remoteness and other factors, district and inter-district RCCs can be created.

Correspondent accounts are opened in the RCC for banks, accounts for accounting for income and expenses of the budget, the pension fund, the economy stabilization fund and other funds, transfer accounts for enterprises of the Ministry of Communications, State Insurance, Sberbank, accounts for budgetary organizations, as well as accounts temporarily opened for other legal entities.

Correspondent sub-accounts can be opened in the RCC by branches of banks with the consent of the Main Department, in which accounts are opened for these banks.

The RCC is entrusted with the functions of storing the values ​​of reserve funds of banknotes and coins (hereinafter referred to as reserve funds) and working cash, as well as cash services for banks and other legal entities.

The RCC, on behalf of the Main Department, carries out operations related to the sale of state loan bonds, treasury obligations and other government securities, their redemption and payment of interest on them.

Federal bodies of state power, bodies of state power of the constituent entities of the Russian Federation and local governments shall not have the right to interfere in the activities of the Bank of Russia in the exercise of its legislatively fixed functions and powers, to make decisions that contradict this Federal Law.

The Bank of Russia submits information to the State Duma and the President of the Russian Federation in accordance with the procedure established by federal laws, and in case of interference in its activities, the Bank of Russia informs the State Duma and the President of the Russian Federation about this.

The Bank of Russia has the right to apply to the courts with claims to invalidate legal acts of federal state authorities, state authorities of the constituent entities of the Russian Federation and local governments.

2. MONETARY POLICY

CENTRAL BANK

Consider the main instruments by which the Central Bank pursues its policy on the open market. These include, first of all, a change in the refinancing rate, a change in the required reserves, operations on the open market with securities and foreign currency, as well as some measures of a strict administrative nature.

The Bank of Russia may set growth targets for one or more indicators of the money supply based on the main directions of the unified state monetary policy.

In order to ensure the stability of credit institutions, the Bank of Russia may establish mandatory ratios for them:

1) the minimum amount of authorized capital for newly created credit institutions, the minimum amount of own funds (capital) for existing credit institutions;

2) the maximum amount of the non-monetary part of the authorized capital;

3) the maximum amount of risk per borrower or group of related borrowers;

4) the maximum amount of large credit risks;

5) the maximum amount of risk per one creditor (depositor);

6) liquidity ratios of the credit institution;

7) capital adequacy ratios;

8) the maximum amount of attracted cash deposits (deposits) of the population;

9) the amount of currency, interest and other risks;

10) the minimum amount of reserves created for high-risk assets;

11) standards for the use of banks' own funds for the acquisition of shares (shares) of other legal entities;

12) the maximum amount of loans, guarantees and guarantees provided by the bank to its participants (shareholders).

If we talk about refinancing, then refinancing is understood as lending by the Central Bank of Russia to banks and credit institutions to regulate the liquidity of the banking system.

The forms, procedure, terms, conditions and limits of refinancing are established by the Bank of Russia.

Direct quantitative restrictions of the Bank of Russia mean the setting of limits on bank refinancing and certain banking operations carried out by credit institutions.

The Bank of Russia is entitled to apply direct quantitative restrictions in exceptional cases for the purpose of pursuing a unified state monetary policy only after consultations with the Government of the Russian Federation.

One of the main economic methods for regulating the volume of money supply in circulation is the determination of the norms of required reserves deposited by commercial banks or credit institutions with the Central Bank of Russia.

The deposit of part of the funds attracted by commercial banks or credit institutions in the fund of required reserves is aimed at ensuring monetary regulation by maintaining the money supply at a certain level in circulation.

By depositing funds in the required reserves fund, commercial banks or credit institutions contribute to the implementation by the Central Bank of Russia of the main directions of monetary regulation and the implementation of anti-inflationary measures .

The amount of required reserves deposited with the Bank of Russia is set as a percentage of the total amount of funds attracted by a commercial bank or credit institution.

Required reserve ratios may not exceed 20 percent of a credit institution's liabilities and may be differentiated for different credit institutions.

Required reserve ratios cannot be changed by more than five points at a time.

And finally, only the central bank, due to its special status, has sufficient liquidity and absolute solvency, reducing the risk of non-payments in settlements with the participation of the Central Bank to almost zero.

3. OPERATIONS OF THE CENTRAL BANK OF RUSSIA

ON THE OPEN MARKET

State management of a market economy involves guaranteed support by the Central Bank of Russia of the activities of commercial banks. This is due to the fact that the latter are the working link of the monetary system, directly organizing credit relations in the national economy in the real sector of the economy.

The passive operations of the Central Bank of Russia include the formation of their authorized capital, the issue of money, the storage of funds from state local budgets and the reserves of commercial banks.

The group of active operations of the Central Bank of Russia includes lending to commercial banks, government spending, buying gold and foreign currency. Through these channels, the issuing resources of the Central Bank enter the monetary circulation of the respective countries.

It should be noted that gradually the methods of monetary regulation (refinancing and mandatory reserves) lost their paramount importance, and the interventions of the Central Bank, known as open market operations, became the main instrument of monetary policy.

Operations of the Central Bank on the open market are understood to be the purchase and sale by the Bank of Russia of treasury bills, government bonds and other government securities, short-term operations with securities with the completion of a reverse transaction later (Article 39).

Foreign exchange interventions of the Central Bank of Russia mean the purchase and sale by the Bank of Russia of foreign currency on the foreign exchange market to influence the ruble exchange rate and the total demand and supply of money (Article 40).

The limit of operations on the open market is approved by the Board of Directors.

Open market operations differ depending on -

terms of the transaction: purchase and sale for cash or purchase for a period with obligatory resale - reverse operations;

objects of transactions: operations with state or private securities;

transaction urgency: short-term (up to 3 months), long-term (up to 1 year or more) transactions with securities;

areas of operations: only in the banking sector of the securities market or in the non-banking sector of the market;

way of setting rates: determined either by the central bank or the market.

Operations on the open market for the first time began to be actively used in the US, Canada and the UK due to the presence in these countries of a developed securities market. Later, this method of credit regulation was widely used in Western Europe.

According to the form of conducting market operations of the central bank with securities, they can be direct or reverse.

A direct transaction is a regular purchase or sale.

The reverse consists in the purchase and sale of securities with the obligatory completion of a reverse transaction at a predetermined rate. The flexibility of reverse operations, the softer effect of their impact, make this instrument of regulation popular. Thus, the share of reverse operations of central banks of leading industrialized countries on the open market reaches from 82 to 99.6%. If you look closely, you can see that in essence these operations are similar to refinancing secured by securities. The Central Bank offers commercial banks to sell securities to him on terms determined on the basis of auction (competitive) bidding, with an obligation to sell them back in 4-8 weeks. .

Thus, open market operations as a method of monetary

regulations are significantly different from the previous two. The main difference is the use of more flexible regulation, since the volume of purchases of securities, as well as the interest rate used, can change daily in accordance with the direction of the policy of the central bank. Commercial banks, taking into account the specified feature of this method, should closely monitor their financial position, while avoiding deterioration in liquidity.

In fact, the Central Bank of Russia performs the functions of an agent of the Ministry of Finance of the Russian Federation for servicing, as well as a regulatory and control body.

The Central Bank of Russia provides the "organizational" side of the functioning of the government short-term bonds (GKO) market: it conducts auctions, redemption, preparation of the necessary documents, transfer of the necessary funds to the account of the Ministry of Finance of the Russian Federation. In addition, he actively participates in the work of the GKO market as a dealer, which makes it possible to have a targeted economic impact on the market, depending on the events that take place directly with him and around him, and in accordance with the current policy of the Central Bank.

At the same time, the Bank of Russia does not aim to extract profit from operations in the market. The Central Bank is focused on maintaining a certain level of certain indicators of the GKO market, which determines the attractiveness of the GKO market for investors.

The fundamental objective of the Central Bank's open market operations is to help the Russian economy achieve an overall level of production characterized by full employment and price stability.

The Central Bank, using the support of the state, is able to provide the payment system with powerful telecommunications facilities necessary for settlements by market participants. The Central Bank is able to register all payment transactions between banks, and to carry out a qualitative offset of mutual obligations of banks.

The Central Bank pursues a discount rate policy (sometimes also called a discount policy), acting as a "lender of last resort." It represents loans to the most financially stable banks experiencing temporary difficulties. The Federal Reserve System (FRS) sometimes provides long-term lending on special terms. These may be loans to small banks to meet their seasonal cash needs. Sometimes loans are also made to banks that are in financial trouble and need help getting their balance sheets in order.

Interest rates of the Bank of Russia are the minimum rates at which the Bank of Russia carries out its operations.

The Bank of Russia may set one or more interest rates for various types of transactions or pursue an interest rate policy without fixing the interest rate.

The Bank of Russia uses interest rate policy to influence market interest rates in order to strengthen the ruble (Article 37).

In terms of the nature of economic processes and the conditions for their implementation, the operations of the Central Bank were fundamentally different from previous years. It was a period not only of overcoming the consequences of the financial crisis of 1998, but also of the formation of new economic realities.

By exercising macroeconomic supervision over the functioning of the banking system as a whole, as well as overseeing the activities of each bank separately, the CBR can promptly take preventive measures to stabilize the financial situation of participants in the payment services market and reorganize a problem bank in order to prevent breaking the links in the settlement chain due to the bankruptcy or illiquidity of its participants.

The dynamics of investment in fixed assets had a positive impact on the state of aggregate demand in the economy. Their volume increased in January this year. compared with January 1999 by 4.5%. Investment activity was determined primarily by maintaining a relatively stable financial position of enterprises. The continued growth of production in machine building and the building materials industry testified to the growing demand for investment products.

The dynamics of macroeconomic indicators for the period 2000-2002 - a moderate increase in consumer prices, an increase in the production of many types of goods and services, a relatively stable financial position of enterprises - on the whole testified to the predominance of positive trends in the Russian economy.

Thus, the policy of the Bank of Russia in the domestic foreign exchange market is carried out in the context of the principles of monetary regulation.

The main operational tasks in the open market, on which the attention of the Central Bank of Russia was focused, were:

1. Active use of the ruble exchange rate as a tool for adjusting inflationary expectations and influencing the inflation rate. Establishing boundaries for deviations of the exchange rate from the limits agreed with the government of the Russian Federation, i.e., pursuing a predictable exchange rate policy (the “currency band” policy).

2. Smoothing out sharp short-term fluctuations in market demand and supply for foreign currency.

3. Development of the infrastructure of the interbank foreign exchange market of the Russian Federation in order to optimize the formation of market demand and supply for foreign currency in all its institutional and territorial segments, to ensure the guarantee of the internal convertibility of the ruble for current foreign exchange transactions.

4. Formation and management of gold and foreign exchange reserves in order to ensure a high level of international liquidity and guarantee interventions by the Bank of Russia to regulate the dynamics of the exchange rate within a given trajectory.

The Central Bank is the conductor of the state monetary policy, which includes a set of measures aimed at strengthening the country's foreign economic position and performs this function in accordance with the Law of the Russian Federation "On currency regulation and currency control" and federal laws.

On behalf of the government, the Central Bank regulates foreign exchange and gold reserves, and is the traditional custodian of state gold and foreign exchange reserves. It regulates international settlements, balances of payments, participates in the operations of the world market for loan capital and gold. The Central Bank, as a rule, provides its country in international and regional monetary organizations.

To carry out its functions on the open market, the Central Bank of Russia may open representative offices in foreign countries.

Bank of Russia loans can be secured by:

Gold and other precious metals in various forms;

Foreign currency;

Promissory notes in Russian and foreign currencies with maturities of up to six months;

State securities.

The Central Bank of the Russian Federation believes that the main task of monetary policy in the open market is to reduce inflation while maintaining and possibly accelerating GDP growth while creating prerequisites for reducing unemployment and increasing real incomes of the population.

As an intermediate goal of the monetary policy for 2000-2003, an increase in the money supply has been determined, which may amount to 21-25% per year. With a projected decline in the velocity of money circulation, this will mean a continuation of the trend towards an increase in the money supply in real terms.

Control over the money supply remains the most important mechanism for ensuring the external and internal stability of the ruble and is the basis for a smooth and predictable change in the exchange rate.

In 2000-2003 The Central Bank of Russia will continue to implement the floating exchange rate policy, which is more in line with the goals and objectives facing the economy.

The basis for the actions of the Bank of Russia in the domestic foreign exchange market will be the smoothing of sharp exchange rate fluctuations, combined with the measures of foreign exchange regulation and foreign exchange control in order to better match the market rate to real economic conditions. The floating exchange rate regime creates more favorable conditions for the Bank of Russia to maintain and accumulate gold and foreign exchange reserves, which is especially important in terms of assessing Russia's solvency and solving the problem of external debt.

In the period 2000-2003. the efforts of the Central Bank of Russia are aimed at creating a more flexible system of monetary policy instruments used in the open market, adequate to changes in the macroeconomic environment, the structure of the financial market, banking, payment and settlement systems, and also corresponding to the need to expand opportunities for obtaining loans from banks by the real sector economy and population.

In order to increase the attractiveness of lending by banks to enterprises in the real sector of the economy, the Central Bank of the Russian Federation is developing not only mechanisms for refinancing banks against promissory notes, mortgages and loan agreements, with the further development of existing credit and deposit mechanisms of the Bank of Russia, but also the operations of the Bank of Russia on the open market.

The Bank of Russia intends, together with the Government of the Russian Federation, to actively influence the improvement of the conditions in which monetary policy is implemented. First of all, this concerns the creation of favorable conditions for the active functioning of the interbank credit market and the restoration of confidence in government securities and the strengthening on this basis of such an important segment of the financial market as the government debt market.

Analyzing the indicators for the period 2000-2001, we see that inflation in the Russian economy amounted to 2.3% - food prices increased by an average of 2.2% per month, prices for paid services increased by 3.4%, with At the same time, prices for communication services grew at the highest rates, the largest price increase was observed in transport. The increase in tariffs for freight transportation amounted to 13.7% over this period.

Of course, there are certain difficulties in the Russian foreign debt market, where there is a downward trend in yields on all types of securities (the most significant in this respect was the decline in yields on OVVZ: in particular, the yield of the 4th tranche - redemption in May 2003 - during the year decreased from 32% to 10% per annum, the yield of Eurobonds maturing in 2003 decreased from 15% to 6.5% per annum), in January 2002 the quotations of all Russian securities rose sharply. In particular, the yield to maturity on OVVZ fell from 10–13% to 7.5–12% per annum, and on Eurobonds – to 4.7–11% per annum. Such a rise in prices for Russian debt obligations is mainly explained by the growth in demand for them from international investment funds.

The growth of the dollar rate, which began in mid-December 2001, continues. In the future, attacks on the ruble exchange rate continued, at present the dollar exchange rate averages 31 rubles 50 kopecks.

CONCLUSION

The Central Bank of Russia is the central link in the state's monetary policy. It is he who, through his actions, conducts monetary policy.

The primary task of the public sector is to stabilize the economy. The state does this by pursuing fiscal and monetary policy. The purpose of monetary policy is to control the money supply or the level of interest on loans - all this is done to regulate the money supply in the country.

The main instruments of the Central Bank are: operations on the open securities market, the level of interest rates on loans to commercial banks and the amount of required reserves.

The Bank of Russia maintains continuity in the defining principles of the formation of monetary policy, subordinating its goals to the main tasks of the state's economic policy.

Regardless of the types of calculations used, the central bank in conducting monetary policy seeks to create such a payment system that would combine two qualities: stability, integrity of the system and its efficiency, however, the achievement of the goals set for the Central Bank's operations in the open market depends on availability of appropriate conditions created by the functioning of all sectors of the economy and the necessary institutional changes.

LITERATURE

2. The Constitution of the USSR of 1936, as amended. and additional, adopted at the I and II sessions of the Supreme Soviet of the USSR of the 3rd convocation. -M., Gosjurizdat, 1951.

3. Federal Law of the Russian Federation of February 3, 1996 N 17-FZ “On Banks and Banking Activities” // CZ of the Russian Federation of February 5, 1996 N 6, art. 492.

5. Federal Law of the Russian Federation "On currency regulation and currency control" dated 09.10.1992 No. 3615-1.

6. Instruction of the Central Bank of the Russian Federation dated July 16, 1993 No. 16 “On the procedure for opening and maintaining accounts of non-residents in the currency of the Russian Federation by authorized banks” (as amended and supplemented).

7. Temporary model regulation on the cash settlement center of the territorial Main Department of the Central Bank of the RSFSR (Bank of Russia) // Business and Banks, No. 25, -1992.

8. Regulation of the Central Bank of the Russian Federation of March 6, 1998 No. 19-P “On the Procedure for the Bank of Russia to Grant Credits to Banks Secured by the Pledge of Government Securities” (as amended and supplemented).

9. Regulation of the Central Bank of the Russian Federation of March 30, 1996 No. 37 “On the required reserves of credit institutions deposited with the Central Bank of the Russian Federation (as amended and supplemented).

10. Andryushin S.A. "The origins and evolution of the credit economy of Russia" // Banking Business No. 9 -1995.

11. Borisov S. M. Commentary on the new laws “Federal Law on Amendments and Additions to the Law “On the Central Bank of the Russian Federation (Bank of Russia)” // Money and Credit No. 11. -1995.

12. Banking. / ed. IN AND. Kolesnikova and L.P. Krolivetskaya. Textbook.M., "Finance and statistics", 1999

13. State Bank and commercial credit // Banking services No. 8, 9, 10, 11, 12 -1995.

14. "Money, credit, banks" edited by O.I. Lavrushin. Textbook. M., "Finance and statistics", 1999.

15. Paramonova T.V. Monetary policy of the Central Bank and its role in achieving macroeconomic stabilization. // Money and credit №10. -1995.

16. A selection of the magazines "Money" and "Expert", January-June 2002

17. “GKO market. Two years of existence. // Bulletin of the Bank of Russia 23.05.95

18. Tosunyan G.A. Banking and banking legislation in Russia / -M .: "Delo Ltd" -1995.

19. Finance, money circulation and credit. Textbook / Ed. V.K. Senchagova, A.I. Arkhipova.-M.: "Prospect", 2000.

20. Chelnokov V.A. Banks and banking operations: primer of lending. Technologies of bank loans. Banking market space: Textbook for universities.-M.: Vyssh.shk., 1998.

Chelnokov V.A. Banks and banking operations.-M.: Higher School, 1998, p.23. art.16

Open market operations- these are transactions with government and corporate securities in the secondary market, made with the aim of influencing the money supply. Such operations are most widespread in states with sufficiently developed financial markets. In developing countries, the Central Bank is forced to carry out operations to place bonds in the primary market.

Open Market Operations: Mechanism of the Process

If, within the framework of monetary policy, a decision is made to reduce the volume of money supply, the Central Bank proceeds to sell the issued securities; to increase the amount of money, purchase operations are carried out. Bulk selling leads to a drop in the value of securities (supply is higher than demand). The purchase of securities by the state increases the amount of money in the correspondent accounts of banks-sellers - as a result, the free balance of money grows, and hence .

The most effective use of such operations is considered in countries with a highly developed credit system, when there is a minimum amount of money outside banks. In Russia, the Central Bank is able to operate on the open market, but only on a limited scale, which is due to a number of reasons: firstly, Russian government bonds are considered to be of little liquidity, and secondly, the Central Bank's own bond portfolio is small. Also, the Central Bank can operate with corporate shares, but only within the framework of REPO transactions.

Open Market Operations: Pros

Activities on the open market have several advantages over other methods of implementing monetary policy:

• Full control. The initiator of operations is the Federal Reserve System (FRS) – this body fully controls the volume of transactions, which means that it is highly likely to be able to achieve the desired result.

• Flexibility. Even if a minimal change in the number of reserves is required, thanks to open market activity, it can be carried out quite accurately.

• Permissibility of error. Any decision can be corrected fairly quickly. For example, if the Fed decides that the money supply is growing too fast, it can slow down by selling some of the paper. Therefore, an error in the calculations does not threaten to become fatal.

• Speed. There are no bureaucratic obstacles in the open market - once the Fed makes a decision, it issues an order to its dealer, who executes the directive immediately.

What are open market operations?

The generally accepted classification is based on 5 criteria:

The most interesting is the classification by conditions. The most flexible instrument of monetary policy is REPO - an agreement to purchase a security providing for a predetermined value. The main characteristics of a REPO transaction are the initial purchase price, the resale price and the time lag (the interval between two transactions). The benefit of commercial banks lies in the following: the prices at which the state purchases a security are somewhat higher than the resale prices. A REPO transaction is characterized by a short-term nature - its duration can be from a week to six months.

According to the urgency, open market transactions are divided as follows: transactions with a duration of up to 3 months are considered short-term, transactions with a period of one year are called long-term.

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ESSAY

Topic : "Operations of the Central Bank on the open market"

INTRODUCTION - 3

1. CENTRAL BANK: CONCEPT, EVOLUTION,

STRUCTURE AND FUNCTION - 4

2. MONETARY POLICY OF THE BANK OF RUSSIA - 12

3. OPERATIONS OF THE CENTRAL BANK IN THE OPEN

CONCLUSION - 23

LITERATURE - 24

INTRODUCTION

The formation of a modern model of the Central Bank of Russia is associated with a specific definition of the functions of central banks in the economy of the state.

Today, even the smallest country has its own central bank. It performs two main tasks.

The first task is that the central bank must ensure the stability of the functioning of the banking and financial systems.

The second task of the Central Bank is to implement such a monetary policy, in the implementation of which, through control over the volume of the money supply, a low level of inflation was ensured.

The most important method of state regulation of social reproduction in order to ensure the most favorable conditions for the development of a market economy is the monetary policy of the Central Bank. With the help of credit regulation, the state seeks to mitigate economic crises and curb inflation.

In order to maintain market conditions, the state uses loans to stimulate investment in various sectors of the national economy.

The monopoly position of the Central Bank in the general economic circulation of money makes it possible for him to keep money circulation under constant control. Banknotes of the Central Bank retain their key role only on the condition that their number is limited.

The successful fulfillment of the tasks and functions assigned to the Bank of Russia requires that it be independent of state representative and executive authorities, local governments, in resolving issues within its competence.

2. CENTRAL BANK: CONCEPT, EVOLUTION,

STRUCTURE AND FUNCTION

The history of the first state bank of Russia begins in the 21st century. In 1769, the first banknote banks were created in Moscow and St. Petersburg, which in 1786 were transformed into a single State banknote bank. The main task of the new bank was to finance government spending through the issuance of paper money, called banknotes.

According to the charter of 1860, the management of all operations was assigned to the Board of the bank, and according to the charter of 1894, the State Bank was personally subordinate to the Minister of Finance. The management of the bank was entrusted to the Council of the bank and the Governor of the bank.

By a decree of the Soviet government of December 14, 1917, on the nationalization of banks, banking was declared a state monopoly, mortgage banks were liquidated, joint-stock and private banks, and then other credit institutions were attached to the State Bank, which became known as the People's Bank of the RSFSR, which ceased to exist January 19, 1920 and in accordance with the decree of the Council of People's Commissars was transformed into the Central Budgetary and Accounting Department under the jurisdiction of Narkomfin.

However, the transition to a new economic policy has already led to a partial restoration of the credit and banking system. So October 3, 1921. The Decree of the Council of People's Commissars and the resolution of the All-Russian Central Executive Committee of October 10, 1921 were adopted. on the creation of the State Bank of the RSFSR.

Subsequently, a number of transformations of the credit and banking system were carried out, which were reduced to structural changes.

According to Article 6 of the Constitution of the USSR (1936), banks were the property of the state and were completely dependent on state authorities.

The beginning of radical transformations was marked by the Decree of the Central Committee of the CPSU and the Council of Ministers of the USSR dated July 17, 1987 No. 821 "On improving the system of banks in the country and strengthening their impact on improving the efficiency of the economy."

A new system of banks was created, the main directions and areas of their activity were determined. The system included: Vneshtorgbank of the USSR, Promstroybank of the USSR, Agroprombank of the USSR, Zhilsotsbank of the USSR, Sberbank of the USSR and the State Bank of the USSR (Gosbank of the USSR), which turned into a single emission, cash and settlement center of the country, organizer and coordinator of credit relations in the national economy.

The last step in the transition to a new two-tier banking system was the adoption by the Supreme Soviet of the USSR in December 1990 of the Law "On Banks and Banking Activity" and the "Law on the State Bank of the USSR." However, these laws did not have time to have a real impact on banking activities in the country. In contrast, similar laws adopted by the Supreme Soviet of the RSFSR paved the way for the development of a developed two-tier banking system in Russia (Central Bank - commercial banks).

Today, the principles of organization and activities of the Central Bank of the Russian Federation (Bank of Russia), its status, tasks, functions, powers are determined by the Constitution of the Russian Federation, the Law on the Central Bank and other federal laws.

concept Central bank began to be used in connection with the expansion of the functions of banks.

Location of the Central Bank of Russia - Moscow.

The Bank of Russia forms a single centralized system with a vertical management structure.

The Central Bank of Russia carries out its expenses at the expense of its own income, is not registered with the tax authorities, is a legal entity, has a seal with the image of the State Emblem of the Russian Federation and its name.

The state is not liable for the obligations of the Bank of Russia, and the Bank of Russia - for the obligations of the state, if they have not assumed such obligations or unless otherwise provided by federal laws.

The system of the Central Bank of the Russian Federation includes the central office, territorial offices, cash settlement centers, computer centers, educational institutions and other enterprises, institutions and organizations, including security units and the Russian Collection Association, necessary for the implementation of the bank's activities.

In accordance with Article 2 of the Law, the authorized capital and other property of the CBR are federal property. In accordance with the purposes and in the manner established by this Federal Law, the Bank of Russia exercises the authority to own, use and dispose of the property of the Bank of Russia. Seizure and encumbrance of property of the Bank of Russia without the consent of the Bank of Russia shall not be allowed.

The supreme body of the Central Bank of Russia is the Board of Directors - a collegiate body that determines the main areas of activity of the Bank of Russia and exercises leadership and management of the Bank of Russia.

The Board of Directors performs the following functions :

1) in cooperation with the Government of the Russian Federation develops and ensures the implementation of the main directions of the unified state monetary policy;

2) approve the annual report of the Bank of Russia and submit it to the State Duma;

3) considers and approves the estimate of expenses of the Bank of Russia for the next year, as well as expenses incurred that are not provided for in the estimate;

4) determine the structure of the Bank of Russia;

5) makes decisions:

On the creation and liquidation of institutions and organizations of the Bank of Russia;

On the establishment of mandatory standards for credit institutions;

On the amount of reserve requirements;

On changes in interest rates of the Bank of Russia;

On determining the limits of operations on the open market;

On participation in international organizations;

On participation in the capital of organizations that ensure the activities of the Bank of Russia, its institutions, organizations and employees;

On the purchase and sale of real estate to ensure the activities of the Bank of Russia, its institutions, organizations and employees;

On the application of direct quantitative restrictions;

On the issue and withdrawal of banknotes and coins from circulation, on the total volume of the issue of cash;

On the procedure for the formation of reserves by credit institutions;

6) approves the internal structure of the Bank of Russia;

7) determine the conditions for the admission of foreign capital to the banking system of the Russian Federation in accordance with federal laws and other functions in accordance with its competence.

The main objectives of the activities of the Central Bank of the Russian Federation are (Article 3 of the Law):

Protecting and ensuring the stability of the ruble, including its purchasing power and exchange rate against foreign currencies;

Development and strengthening of the banking system of the Russian Federation;

Ensuring the efficient and uninterrupted functioning of the settlement system.

Making a profit is not the purpose of the Bank of Russia.

The main tasks of the CBR are the regulation of monetary circulation, the implementation of a unified monetary policy, the protection of the interests of depositors, banks, supervision of the activities of commercial banks and other credit institutions, the implementation of operations for foreign economic activity.

In addition to the above goals and objectives, the Central Bank of Russia represents the interests of the Russian Federation in relations with the central banks of foreign states, as well as in international banks and other international monetary and financial organizations.

In accordance with the current legislation of the Russian Federation:

The Bank of Russia is accountable to the State Duma of the Federal Assembly of the Russian Federation. Accountability of the Bank of Russia to the State Duma means:

Appointment and dismissal by the State Duma on the proposal of the President of the Russian Federation of the Chairman of the Bank of Russia;

Appointment and dismissal by the State Duma of members of the Board of Directors of the Bank of Russia (hereinafter referred to as the Board of Directors);

Submission by the Bank of Russia to the State Duma for consideration of the annual report, as well as the auditor's report;

Determination by the State Duma of an audit firm to conduct an audit of the Bank of Russia;

Holding parliamentary hearings on the activities of the Bank of Russia with the participation of its representatives, etc.

Regarding the economy of the Russian Federation, in accordance with Article 4 of the Law, the main functions of the Central Bank of the Russian Federation are:

1) in cooperation with the Government of the Russian Federation, develop and implement a unified state monetary policy aimed at protecting and ensuring the stability of the ruble;

2) monopoly issues cash and organizes its circulation;

3) is a lender of last resort for credit institutions, organizes a refinancing system;

4) establishes the rules for making settlements in the Russian Federation;

5) establishes the rules for conducting banking operations, accounting and reporting for the banking system;

6) carry out state registration of credit organizations; issues and revokes licenses of credit organizations and organizations involved in their audit;

7) exercise supervision over the activities of credit institutions;

8) register the issue of securities by credit institutions in accordance with federal laws;

9) carries out independently or on behalf of the Government of the Russian Federation all types of banking operations necessary to fulfill the main tasks of the Bank of Russia;

10) carry out currency regulation, including operations for the purchase and sale of foreign currency; determines the procedure for making settlements with foreign states;

11) organize and carry out currency control both directly and through authorized banks in accordance with the legislation of the Russian Federation;

12) takes part in the development of the forecast of the balance of payments of the Russian Federation and organizes the compilation of the balance of payments of the Russian Federation;

13) in order to carry out these functions, analyze and forecast the state of the economy of the Russian Federation as a whole and by region, primarily monetary, monetary, financial and price relations; publishes relevant materials and statistical data;

14) in order to implement the functions assigned to it, the CBR participates in the development of the economic policy of the Government of the Russian Federation.

An important link in the banking system of the Russian Federation is cash settlement center.

The cash settlement center (hereinafter referred to as the RCC) is a structural subdivision of the Main Department of the Bank of Russia for the republic that is part of the Russian Federation, the autonomous region, the autonomous district, the territory, the region, the cities of Moscow and St. Petersburg.

The creation of the RCC, its reorganization and liquidation are carried out with the permission of the Bank of Russia on the basis of the order of the head of the relevant Main Department. Depending on the number of organizations served, the level of automation, the volume of transactions, communication conditions, territorial remoteness and other factors, district and inter-district RCCs can be created.

Correspondent accounts are opened in the RCC for banks, accounts for accounting for income and expenses of the budget, the pension fund, the economy stabilization fund and other funds, transfer accounts for enterprises of the Ministry of Communications, State Insurance, Sberbank, accounts for budgetary organizations, as well as accounts temporarily opened for other legal entities.

Correspondent sub-accounts can be opened in the RCC by branches of banks with the consent of the Main Department, in which accounts are opened for these banks.

The RCC is entrusted with the functions of storing the values ​​of reserve funds of banknotes and coins (hereinafter referred to as reserve funds) and working cash, as well as cash services for banks and other legal entities.

The RCC, on behalf of the Main Department, carries out operations related to the sale of state loan bonds, treasury obligations and other government securities, their redemption and payment of interest on them.

Federal bodies of state power, bodies of state power of the constituent entities of the Russian Federation and local governments shall not have the right to interfere in the activities of the Bank of Russia in the exercise of its legislatively fixed functions and powers, to make decisions that contradict this Federal Law.

The Bank of Russia submits information to the State Duma and the President of the Russian Federation in accordance with the procedure established by federal laws, and in case of interference in its activities, the Bank of Russia informs the State Duma and the President of the Russian Federation about this.

The Bank of Russia has the right to apply to the courts with claims to invalidate legal acts of federal state authorities, state authorities of the constituent entities of the Russian Federation and local governments.

2. MONETARY POLICY

CENTRAL BANK

Consider the main instruments by which the Central Bank pursues its policy on the open market. These include, first of all, a change in the refinancing rate, a change in the required reserves, operations on the open market with securities and foreign currency, as well as some measures of a strict administrative nature.

The Bank of Russia may set growth targets for one or more indicators of the money supply based on the main directions of the unified state monetary policy.

In order to ensure the stability of credit institutions, the Bank of Russia may establish mandatory ratios for them:

1) the minimum amount of authorized capital for newly created credit institutions, the minimum amount of own funds (capital) for existing credit institutions;

2) the maximum amount of the non-monetary part of the authorized capital;

3) the maximum amount of risk per borrower or group of related borrowers;

4) the maximum amount of large credit risks;

5) the maximum amount of risk per one creditor (depositor);

6) liquidity ratios of the credit institution;

7) capital adequacy ratios;

8) the maximum amount of attracted cash deposits (deposits) of the population;

9) the amount of currency, interest and other risks;

10) the minimum amount of reserves created for high-risk assets;

11) standards for the use of banks' own funds for the acquisition of shares (shares) of other legal entities;

12) the maximum amount of loans, guarantees and guarantees provided by the bank to its participants (shareholders).

If we talk about refinancing, then refinancing is understood as lending by the Central Bank of Russia to banks and credit institutions to regulate the liquidity of the banking system.

The forms, procedure, terms, conditions and limits of refinancing are established by the Bank of Russia.

Direct quantitative restrictions of the Bank of Russia mean the setting of limits on bank refinancing and certain banking operations carried out by credit institutions.

The Bank of Russia is entitled to apply direct quantitative restrictions in exceptional cases for the purpose of pursuing a unified state monetary policy only after consultations with the Government of the Russian Federation.

One of the main economic methods for regulating the volume of money supply in circulation is the determination of the norms of required reserves deposited by commercial banks or credit institutions with the Central Bank of Russia.

The deposit of part of the funds attracted by commercial banks or credit institutions in the fund of required reserves is aimed at ensuring monetary regulation by maintaining the money supply at a certain level in circulation.

By depositing funds in the required reserves fund, commercial banks or credit institutions contribute to the implementation by the Central Bank of Russia of the main directions of monetary regulation and the implementation of anti-inflationary measures .

The amount of required reserves deposited with the Bank of Russia is set as a percentage of the total amount of funds attracted by a commercial bank or credit institution.

Required reserve ratios may not exceed 20 percent of a credit institution's liabilities and may be differentiated for different credit institutions.

Required reserve ratios cannot be changed by more than five points at a time.

When a banking license is revoked, the funds deposited with the Bank of Russia are used to pay off the credit institution's obligations to depositors and creditors.

And finally, only the central bank, due to its special status, has sufficient liquidity and absolute solvency, reducing the risk of non-payments in settlements with the participation of the Central Bank to almost zero.

3. OPERATIONS OF THE CENTRAL BANK OF RUSSIA

ON THE OPEN MARKET

State management of a market economy involves guaranteed support by the Central Bank of Russia of the activities of commercial banks. This is due to the fact that the latter are the working link of the monetary system, directly organizing credit relations in the national economy in the real sector of the economy.

The passive operations of the Central Bank of Russia include the formation of their authorized capital, the issue of money, the storage of funds from state local budgets and the reserves of commercial banks.

The group of active operations of the Central Bank of Russia includes lending to commercial banks, government spending, buying gold and foreign currency. Through these channels, the issuing resources of the Central Bank enter the monetary circulation of the respective countries.

It should be noted that gradually the methods of monetary regulation (refinancing and mandatory reserves) lost their paramount importance, and the interventions of the Central Bank, known as open market operations, became the main instrument of monetary policy.

Operations of the Central Bank on the open market are understood to be the purchase and sale by the Bank of Russia of treasury bills, government bonds and other government securities, short-term operations with securities with the completion of a reverse transaction later (Article 39).

Foreign exchange interventions of the Central Bank of Russia mean the purchase and sale by the Bank of Russia of foreign currency on the foreign exchange market to influence the ruble exchange rate and the total demand and supply of money (Article 40).

The limit of operations on the open market is approved by the Board of Directors.

Open market operations differ depending on -

terms of the transaction: purchase and sale for cash or purchase for a period with obligatory resale - reverse operations;

objects of transactions: operations with state or private securities;

transaction urgency: short-term (up to 3 months), long-term (up to 1 year or more) transactions with securities;

areas of operations: only in the banking sector of the securities market or in the non-banking sector of the market;

way of setting rates: determined either by the central bank or the market.

Operations on the open market for the first time began to be actively used in the US, Canada and the UK due to the presence in these countries of a developed securities market. Later, this method of credit regulation was widely used in Western Europe.

According to the form of conducting market operations of the central bank with securities, they can be direct or reverse.

A direct transaction is a regular purchase or sale.

The reverse consists in the purchase and sale of securities with the obligatory completion of a reverse transaction at a predetermined rate. The flexibility of reverse operations, the softer effect of their impact, make this instrument of regulation popular. Thus, the share of reverse operations of central banks of leading industrialized countries on the open market reaches from 82 to 99.6%. If you look closely, you can see that in essence these operations are similar to refinancing secured by securities. The Central Bank offers commercial banks to sell securities to him on terms determined on the basis of auction (competitive) bidding, with an obligation to sell them back in 4-8 weeks. .

Thus, open market operations as a method of monetary

regulations are significantly different from the previous two. The main difference is the use of more flexible regulation, since the volume of purchases of securities, as well as the interest rate used, can change daily in accordance with the direction of the policy of the central bank. Commercial banks, taking into account the specified feature of this method, should closely monitor their financial position, while avoiding deterioration in liquidity.

In fact, the Central Bank of Russia performs the functions of an agent of the Ministry of Finance of the Russian Federation for servicing, as well as a regulatory and control body.

The Central Bank of Russia provides the "organizational" side of the functioning of the government short-term bonds (GKO) market: it conducts auctions, redemption, preparation of the necessary documents, transfer of the necessary funds to the account of the Ministry of Finance of the Russian Federation. In addition, he actively participates in the work of the GKO market as a dealer, which makes it possible to have a targeted economic impact on the market, depending on the events that take place directly with him and around him, and in accordance with the current policy of the Central Bank.

At the same time, the Bank of Russia does not aim to extract profit from operations in the market. The Central Bank is focused on maintaining a certain level of certain indicators of the GKO market, which determines the attractiveness of the GKO market for investors.

The fundamental objective of the Central Bank's open market operations is to help the Russian economy achieve an overall level of production characterized by full employment and price stability.

The Central Bank, using the support of the state, is able to provide the payment system with powerful telecommunications facilities necessary for settlements by market participants. The Central Bank is able to register all payment transactions between banks, and to carry out a qualitative offset of mutual obligations of banks.

The Central Bank pursues a discount rate policy (sometimes also called a discount policy), acting as a "lender of last resort." It represents loans to the most financially stable banks experiencing temporary difficulties. The Federal Reserve System (FRS) sometimes provides long-term lending on special terms. These may be loans to small banks to meet their seasonal cash needs. Sometimes loans are also made to banks that are in financial trouble and need help getting their balance sheets in order.

Interest rates of the Bank of Russia are the minimum rates at which the Bank of Russia carries out its operations.

The Bank of Russia may set one or more interest rates for various types of transactions or pursue an interest rate policy without fixing the interest rate.

The Bank of Russia uses interest rate policy to influence market interest rates in order to strengthen the ruble (Article 37).

In terms of the nature of economic processes and the conditions for their implementation, the operations of the Central Bank were fundamentally different from previous years. It was a period not only of overcoming the consequences of the financial crisis of 1998, but also of the formation of new economic realities.

By exercising macroeconomic supervision over the functioning of the banking system as a whole, as well as overseeing the activities of each bank separately, the CBR can promptly take preventive measures to stabilize the financial situation of participants in the payment services market and reorganize a problem bank in order to prevent breaking the links in the settlement chain due to the bankruptcy or illiquidity of its participants.

The dynamics of investment in fixed assets had a positive impact on the state of aggregate demand in the economy. Their volume increased in January this year. compared with January 1999 by 4.5%. Investment activity was determined primarily by maintaining a relatively stable financial position of enterprises. The continued growth of production in machine building and the building materials industry testified to the growing demand for investment products.

The dynamics of macroeconomic indicators for the period 2000-2002 - a moderate increase in consumer prices, an increase in the production of many types of goods and services, a relatively stable financial position of enterprises - on the whole testified to the predominance of positive trends in the Russian economy.

Thus, the policy of the Bank of Russia in the domestic foreign exchange market is carried out in the context of the principles of monetary regulation.

The main operational tasks in the open market, on which the attention of the Central Bank of Russia was focused, were:

1. Active use of the ruble exchange rate as a tool for adjusting inflationary expectations and influencing the inflation rate. Establishing boundaries for deviations of the exchange rate from the limits agreed with the government of the Russian Federation, i.e., pursuing a predictable exchange rate policy (the “currency band” policy).

2. Smoothing out sharp short-term fluctuations in market demand and supply for foreign currency.

3. Development of the infrastructure of the interbank foreign exchange market of the Russian Federation in order to optimize the formation of market demand and supply for foreign currency in all its institutional and territorial segments, to ensure the guarantee of the internal convertibility of the ruble for current foreign exchange transactions.

4. Formation and management of gold and foreign exchange reserves in order to ensure a high level of international liquidity and guarantee interventions by the Bank of Russia to regulate the dynamics of the exchange rate within a given trajectory.

The Central Bank is the conductor of the state monetary policy, which includes a set of measures aimed at strengthening the country's foreign economic position and performs this function in accordance with the Law of the Russian Federation "On currency regulation and currency control" and federal laws.

On behalf of the government, the Central Bank regulates foreign exchange and gold reserves, and is the traditional custodian of state gold and foreign exchange reserves. It regulates international settlements, balances of payments, participates in the operations of the world market for loan capital and gold. The Central Bank, as a rule, provides its country in international and regional monetary organizations.

To carry out its functions on the open market, the Central Bank of Russia may open representative offices in foreign countries.

Bank of Russia loans can be secured by:

Gold and other precious metals in various forms;

Foreign currency;

Promissory notes in Russian and foreign currencies with maturities of up to six months;

State securities.

The Central Bank of the Russian Federation believes that the main task of monetary policy in the open market is to reduce inflation while maintaining and possibly accelerating GDP growth while creating prerequisites for reducing unemployment and increasing real incomes of the population.

As an intermediate goal of the monetary policy for 2000-2003, an increase in the money supply has been determined, which may amount to 21-25% per year. With a projected decline in the velocity of money circulation, this will mean a continuation of the trend towards an increase in the money supply in real terms.

Control over the money supply remains the most important mechanism for ensuring the external and internal stability of the ruble and is the basis for a smooth and predictable change in the exchange rate.

In 2000-2003 The Central Bank of Russia will continue to implement the floating exchange rate policy, which is more in line with the goals and objectives facing the economy.

The basis for the actions of the Bank of Russia in the domestic foreign exchange market will be the smoothing of sharp exchange rate fluctuations, combined with the measures of foreign exchange regulation and foreign exchange control in order to better match the market rate to real economic conditions. The floating exchange rate regime creates more favorable conditions for the Bank of Russia to maintain and accumulate gold and foreign exchange reserves, which is especially important in terms of assessing Russia's solvency and solving the problem of external debt.

In the period 2000-2003. the efforts of the Central Bank of Russia are aimed at creating a more flexible system of monetary policy instruments used in the open market, adequate to changes in the macroeconomic environment, the structure of the financial market, banking, payment and settlement systems, and also corresponding to the need to expand opportunities for obtaining loans from banks by the real sector economy and population.

In order to increase the attractiveness of lending by banks to enterprises in the real sector of the economy, the Central Bank of the Russian Federation is developing not only mechanisms for refinancing banks against promissory notes, mortgages and loan agreements, with the further development of existing credit and deposit mechanisms of the Bank of Russia, but also the operations of the Bank of Russia on the open market.

The Bank of Russia intends, together with the Government of the Russian Federation, to actively influence the improvement of the conditions in which monetary policy is implemented. First of all, this concerns the creation of favorable conditions for the active functioning of the interbank credit market and the restoration of confidence in government securities and the strengthening on this basis of such an important segment of the financial market as the government debt market.

Analyzing the indicators for the period 2000-2001, we see that inflation in the Russian economy amounted to 2.3% - food prices increased by an average of 2.2% per month, prices for paid services increased by 3.4%, with At the same time, prices for communication services grew at the highest rates, the largest price increase was observed in transport. The increase in tariffs for freight transportation amounted to 13.7% over this period.

Of course, there are certain difficulties in the Russian foreign debt market, where there is a downward trend in yields on all types of securities (the most significant in this respect was the decline in yields on OVVZ: in particular, the yield of the 4th tranche - redemption in May 2003 - during the year decreased from 32% to 10% per annum, the yield of Eurobonds maturing in 2003 decreased from 15% to 6.5% per annum), in January 2002 the quotations of all Russian securities rose sharply. In particular, the yield to maturity on OVVZ fell from 10–13% to 7.5–12% per annum, and on Eurobonds – to 4.7–11% per annum. Such a rise in prices for Russian debt obligations is mainly explained by the growth in demand for them from international investment funds.

The growth of the dollar rate, which began in mid-December 2001, continues. In the future, attacks on the ruble exchange rate continued, at present the dollar exchange rate averages 31 rubles 50 kopecks.

CONCLUSION

The Central Bank of Russia is the central link in the state's monetary policy. It is he who, through his actions, conducts monetary policy.

The primary task of the public sector is to stabilize the economy. The state does this by pursuing fiscal and monetary policy. The purpose of monetary policy is to control the money supply or the level of interest on loans - all this is done to regulate the money supply in the country.

The main instruments of the Central Bank are: operations on the open securities market, the level of interest rates on loans to commercial banks and the amount of required reserves.

The Bank of Russia maintains continuity in the defining principles of the formation of monetary policy, subordinating its goals to the main tasks of the state's economic policy.

Regardless of the types of calculations used, the central bank in conducting monetary policy seeks to create such a payment system that would combine two qualities: stability, integrity of the system and its efficiency, however, the achievement of the goals set for the Central Bank's operations in the open market depends on availability of appropriate conditions created by the functioning of all sectors of the economy and the necessary institutional changes.

LITERATURE

2. The Constitution of the USSR of 1936, as amended. and additional, adopted at the I and II sessions of the Supreme Soviet of the USSR of the 3rd convocation. -M., Gosjurizdat, 1951.

3. Federal Law of the Russian Federation of February 3, 1996 N 17-FZ “On Banks and Banking Activities” // CZ of the Russian Federation of February 5, 1996 N 6, art. 492.

4. Federal Law of December 2, 1990 “On the Central Bank of the Russian Federation (Bank of Russia)” (as amended by Federal Laws No. 65-FZ of April 26, 1995; 214-FZ, dated 06.20.96 N 80-FZ, dated 27.02.97 N 45-FZ).

5. Federal Law of the Russian Federation "On currency regulation and currency control" dated 09.10.1992 No. 3615-1.

6. Instruction of the Central Bank of the Russian Federation dated July 16, 1993 No. 16 “On the procedure for opening and maintaining accounts of non-residents in the currency of the Russian Federation by authorized banks” (as amended and supplemented).

7. Temporary model regulation on the cash settlement center of the territorial Main Department of the Central Bank of the RSFSR (Bank of Russia) // Business and Banks, No. 25, -1992.

8. Regulation of the Central Bank of the Russian Federation of March 6, 1998 No. 19-P “On the Procedure for the Bank of Russia to Grant Credits to Banks Secured by the Pledge of Government Securities” (as amended and supplemented).

9. Regulation of the Central Bank of the Russian Federation of March 30, 1996 No. 37 “On the required reserves of credit institutions deposited with the Central Bank of the Russian Federation (as amended and supplemented).

10. Andryushin S.A. "The origins and evolution of the credit economy of Russia" // Banking Business No. 9 -1995.

11. Borisov S. M. Commentary on the new laws “Federal Law on Amendments and Additions to the Law “On the Central Bank of the Russian Federation (Bank of Russia)” // Money and Credit No. 11. -1995.

12. Banking. / ed. IN AND. Kolesnikova and L.P. Krolivetskaya. Textbook.M., "Finance and statistics", 1999

13. State Bank and commercial credit // Banking services No. 8, 9, 10, 11, 12 -1995.

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