Replacing the US Dollar with the Russian Ruble in Payments for Russian Exports: AFinancial and Legal Mechanism for Implementation and Implications for the Monetary Policy

The paper examines the reasons for the use of the US dollar as a means of payment in the implementation of foreign economic activity, determines shortcomings that do not allow the use of the Russian ruble in international trade. An organizational and legal mechanism has been developed that makes it possible to switch to the use of the Russian ruble when foreign buyers pay for certain exports of Russia. The mechanism under consideration is based on market principles and it is implemented on the basis of the absence of administrative coercion to apply it. The consequences of using the mechanism are considered in the context of the Russian Federation’s implementation of the monetary policy. The paper uses analytical and structural-logical methods of research, financial and legal modeling of the processes of partial replacement of foreign currencies by the Russian currency in the implementation of foreign economic activity by domestic exporters. It is proposed to create a mechanism for the short-term provision of ruble liquidity to foreign buyers of certain Russian exports, which involves the exchange of foreign currency for Russian rubbles in order to pay for specific foreign trade contracts. Stimulation for its use should be carried out by means of customs and tariff regulation. The mechanism functioning for providing liquidity is supposed to be established using organizational capabilities of the Bank of Russia (either within its structural unit, or in the form of an independent organization controlled by the Central Bank of the Russian Federation). To test the action and consequences of using this mechanism, it is necessary to conduct an experiment on a limited product market that meets the selected criteria. The mechanism for providing ruble liquidity should result in a significant increase in demand for the Russian ruble in the domestic foreign exchange market, which will cause its exchange rate to strengthen and make it possible to reduce the key rate of the Bank of Russia in order to stimulate economic growth to compensate for the deflationary effect.