On December 31, 2021 the Central Bank of the Russian Federation notified the shareholders of UFA; Russia’s leading currency dealer, that it was terminating its relationship with the previously successful UFAs. The decision was made due to economic and credit risks, including possible adverse effects on the market for highly liquid financial instruments like UFAs. The decision affects the remaining ten largest members of the Eurasian Economic Union (EEU). On Dec 31, 2021, the Central Bank of the Russian Federation notified all its members that they will no longer be allowed to participate in the Currency Dealers Association (CDA), an international organization that represents the UFA. The reason for the termination is not publicly known.
The sudden change in the structure of UFA, the principal financial vehicle of Russian state finances, raised the question of changes in the domestic political economy of the country. In addition to losing the right to represent the CDA, which represents the major Russian banks and finance institutions, there could be other negative repercussions. The drastic reduction of the country’s access to currency markets may seriously affect the free market system of the nation. The sudden drop of the UFA membership is expected to have a far reaching impact on the domestic financial system, particularly on the country’s capital market. The sudden cessation of currency transactions by leading banks of the Russian Federation will result in large-scale liquidity crunch in the domestic financial market and the effects could be felt in the form of increased FX risk and FX volatility. The continued absence of FX players from the Russian money market may trigger another round of stock market crash.
On Dec 31, 2021, the Central Bank of the Russian Federation notified all its members that it was terminating its association with the previously successful UFA, the country’s leading currency dealer. The reason for the termination is not publicly disclosed. However, according to sources in the Russian Ministry of Finance, the Central Bank considers that the UFA was unable to successfully manage the external financing conditions, including its foreign currency trading programme, despite previously achieving significant successes in its foreign exchange operations.
According to the previously announced plans, the Central Bank of Russia will start the process of evaluating foreign currency dealers who are not members of ufa. Once the evaluation process is completed and the final list of non-members is ready, the Central Bank will make a list of all the available foreign currency trading opportunities available for players who are not members of ufa and ban all these players from participation in its future free roll games. On Dec 31st, the Central Bank will announce the final list of qualified non-resident foreign currency dealers. On Jan 1st, after the list is published in the newspaper, all eligible players can apply for a registration to become a free agent.
The second stage of ufa’s implementation is the unrestricted free flow of capital. All traders and participants in ufa are free to sign up with any team in the system, provided that the player’s registration with ufa is valid. At this point, no restrictions are enforced, and no one may compel anyone to join ufa, or force anyone to play in the ufa lottery. The main idea behind introducing unrestricted free flow of capital into ufa is to make it easier for potential players to find a team that is suitable for his needs. To this end, only those players who meet the requirements of the system can join the lottery.
The system of free agent registration is designed in such a way so as to eliminate sham transactions and money laundering. Unlike traditional sports, in ufa no one can make you join ufa if your agent is not registered in the system. As a result, you have full control over your transactions. All players will have access to the system, and once you are a free agent, you will have to generate income by playing games, and taking part in tournaments which are organized by ufa.