The Russian foreign exchange market has been operational for many years, and during its time it has left a huge mark in the history of Russia’s economy. Currently, the Forex market is one of the main factors that aid the rapid development of the Russian economy and its importance around the world. Most people know that Russia’s government is usually very strict when it comes to cooperating with foreign countries, but it is obvious that they knew how much the Forex market will help their economy.
Introducing things such as ruble convertibility and strict control over the foreign exchange rates in Russia helped the country build a market economy which is developing quicker than ever before.
Of course, the Forex market in Russia wasn’t always so successful. The first steps in improving its quality were the price liberalizations which occurred in 1992. This major change improved the ruble’s stability and turned into a major factor in the world economy. Although the American dollar is responsible for a major part of the trading volume generated in the Russian Forex market, the ruble is still rather popular and traders often rely on it when opening new positions.
Forex Brokers for Russian Traders
The entire foreign exchange market in Russia is under the control of the Central Bank of Russia. It is responsible for the regulation of Russian brokers and other Forex trading agents. It also provides commercial banks with special licenses that help them track the progress of the trading volume generated by using Russian Forex agents.
The main purpose of the license is to certify that a certain bank can take part in the Forex market. It is important to remember that there are two types of licenses.
The first one allows commercial banks to use foreign currencies to execute both internal and external trades. In this scenario, the bank will buy a foreign currency from exporters and will then re-sell it to importers.
The progress which the Russian Forex market has made during the past two decades is remarkable. We can rarely see a market progress so rapidly and help a country’s economy so much. At the moment, a major fraction of the trading volume in the Russian foreign exchange market is generated by trades that include the American dollar, the Euro, and the Japanese yen. Russia’s government certainly did a great job expanding the market and turning it from a simple spot market into a forward, futures and spot market.