The Financial Times reported on April 13 that the Central Bank of the Russian Federation, or RCFF, has decided to change its foreign currency debt management policy. The RCFF will now allow its members to trade in the U.S. dollar, EURO and GBP/CAD, according to statements issued by its board of directors. This follows the announcement on March 5 by the RCFF that it would allow its members to trade in the U.S. dollar, EURO and GBP/CAD. The change was announced in response to the deterioration of the rouble against the currencies of other countries.
UFA was established in response to the failure of a plan by Russia’s government to convert its convertible roubles to the ruble. The reasons given for this were that the move could seriously affect the foreign trade and reduce the country’s revenue. UFA is designed to help encourage more people to trade in the U.S. dollar and other non-ruble currencies. It was established by the Ministry of Finance, or the Ministry of Economic Development of the Russian Federation, and was supposed to support the development of the nation’s economy.
Previously, the Ministry of Transport and the Finance Ministry had indicated publicly that the conversion to the euro might reduce the volume of exports from Russia and increase the cost of imports. The decision to allow foreign currency trading by its citizens in the dollar was not announced during a public hearing by the members of the Federal Security Bureau or the FSB. However, President Hotel Moscow advertised the decision on the presidential website, claiming that the measure will reduce the cost of catering services by ufa, which has been set by the Ministry of Transport. The reduction in the volume of exported items to the U.S. dollar is estimated at about twenty percent of the total volume of sales by ufa from Russia, and five percent of the total volume of sales from the rubles per person.
According to the Ministry of Transport of Russia, the reasons for converting the russet route into the ruble was based on the difficulties caused by low production and high operating costs. Furthermore, according to the Ministry of Economic Development of the Russian Federation, foreign currencies will play a major role in overcoming the current problems of the national economy, particularly with regard to the finance sector. Moreover, according to the same sources, the decision was made to convert the russet route into the euro on the grounds that it will provide the country with a large foreign exchange market, which will improve the functioning of the national economy. On July 6th, the Central Bank of Russia released a decision to change the domestic money system and allow people to exchange the U.S. dollar into the Russian rouble within a few days. This decision was apparently made in order to facilitate the development of ufa, but there are doubts as to whether the move will really have a positive effect on the country’s economy.
On the other hand, some analysts believe that the relaxation of financial conditions will increase the demand for ufa. The decline in the price of oil is considered to be one of the main reasons for this measure. Oil prices are considered to be one of the main reasons for weakening the economy of Russia. Moreover, the authorities of the ufa republic of Moscow have also decided to introduce a special UFA tax, which is expected to raise the price of oil. According to the same sources, it is estimated that the introduction of these new tax measures will increase the price of oil up by about twenty percent, which is a drastic increase compared to the five percent increase, which was introduced in July.
According to the same sources, the authorities of ufa are also considering the introduction of a tax on the transport sector. They claim that this measure will create more opportunities for ufa investors to increase their shareholdings in ufa according to the rising prices of oil. However, all these measures are still under discussion and a final decision has not been taken as of now. This means that the chances of ufa becoming a truly equalizer between the east and west are still very slim.