Subject. The article discusses trading and financial relations of today’s Russia. Objectives. The article is to determine requirements for trading and financial relations to progress in Russia today and evaluate how they influence the economic growth. Methods. The study is based on the systems approach and the statistical analysis. Results. Having analyzed trading and financial relations, I found what can give an impetus to the contemporary economy in Russia, i.e. oil prices, related risks. The article demonstrates that government bonds (federal loan bonds) cushion and set off an increase in the foreign exchange rate. The dynamics of the oil price and the issue of federal loan bonds shape the environment where trading and financial relations evolve in Russia today, i.e. export prices for natural resources outgrowing prices for some commodities; a stalling growth in the acquisition of financial assets, debt instruments and a growth in liabilities, equity and shares of mutual funds; a growing pace of long positions of forward, futures, options contracts due to a slow down in short positions; rising pace of official reserve assets. As long as the international trade slows down and the global recession begins, the existing trading and financial relations resulted in a palpable economic growth. Conclusions and Relevance. Opportunities for the development of trade and financial relations in contemporary Russia are conditioned by the changing world order, which determines the dynamics of economic growth. The findings expand the knowledge and create new competencies of governmental authorities when making managerial decisions to ensure the effective design of the Russian economy in terms of the current trading and financial policy.
Keywords: oil, federal loan bonds, consumption, reserve assets, demand, trade and financial relations
References:
Idrisov G., Ponomarev Yu., Sinelnikov-Murylev S. Terms of Trade and Russian Economic Development. Russian Journal of Economics, 2016, vol. 2, iss. 3, pp. 279–301. URL: Link
Radaev V. A Rise of State Activism in a Competitive Industry: The Case of Russian Retail Trade Law of 2009. Communist and Post–Communist Studies, 2018, vol. 51, iss. 1, pp. 27–37. URL: Link
Klomp J. The Impact of Russian Sanctions on the Return of Agricultural Commodity Futures in the EU. Research in International Business and Finance, 2020, vol. 51, Article 101073. URL: Link
Bouwmeester M.C., Oosterhaven J. Economic Impacts of Natural Gas Flow Disruptions between Russia and the EU. Energy Policy, 2017, vol. 106, pp. 288–297. URL: Link
Bayramov V., Rustamli N., Abbas G. Collateral Damage: The Western Sanctions on Russia and the Evaluation of Implications for Russia's post–Communist Neighbourhood. International Economics, 2020, vol. 162, pp. 92–109. URL: Link
Sinyakov A., Yudaeva K. Central Bank Policy under Significant Balance-of-Payment Shocks and Structural Shifts. Russian Journal of Economics, 2016, vol. 2, iss. 3, pp. 246–278. URL: Link
Kudrin A., Sokolov I. Fiscal Maneuver and Restructuring of the Russian Economy. Russian Journal of Economics, 2017, vol. 3, iss. 3, pp. 221–239. URL: Link
Kumhof M., Yan I. Balance-of-Payments Anti-crises. Journal of Macroeconomics, 2016, vol. 48, pp. 186–202. URL: Link
Bazzana F., Zadorozhnaya A., Gabriele R. The Role of Covenants in Bond Issue. The Case of Russian Companies. Emerging Markets Review, 2018, vol. 36, pp. 1–18. URL: Link
Phan D.H.B., Iyke B.N., Sharma S.S., Affandi Y. Economic Policy Uncertainty and Financial Stability – Is There a Relation? Economic Modelling. In press, corrected proof. Available online 29 February 2020. URL: Link
Ono S. Financial Development and Economic Growth Nexus in Russia. Russian Journal of Economics, 2017, vol. 3, iss. 3, pp. 321–332. URL: Link
Berglof E., Lehmann A. Sustaining Russia's Growth: The Role of Financial Reform. Journal of Comparative Economics, 2009, vol. 37, iss. 2, pp. 198–206. URL: Link
Fazio D.M., Silva T.C., Tabak B.M., Cajueiro D.O. Inflation Targeting and Financial Stability: Does the Quality of Institutions Matter? Economic Modelling, 2018, vol. 71, pp. 1–15. URL: Link
Ferreira de Mendonça H., Nascimento N.C. Monetary Policy Efficiency and Macroeconomic Stability: Do Financial Openness and Economic Globalization Matter? The North American Journal of Economics and Finance, 2020, vol. 51, Article 100870. URL: Link
Aizenman J., Cheung Y.-W., Qian X.W. The Currency Composition of International Reserves, Demand for International Reserves, and Global Safe Assets. Journal of International Money and Finance, 2020, vol. 102, Article 102120. URL: Link
Ito H., McCauley R.N. Currency Composition of Foreign Exchange Reserves. Journal of International Money and Finance, 2020, vol. 102, Article 102104. URL: Link
Ito H., McCauley R.N., Chan T. Currency Composition of Reserves, Trade Invoicing and Currency Movements. Emerging Markets Review, 2015, vol. 25, pp. 16–29. URL: Link
Akdogan I.U. Understanding the Dynamics of Foreign Reserve Management: The Central Bank Intervention Policy and the Exchange Rate Fundamentals. International Economics, 2020, vol. 161, pp. 41–55. URL: Link
Pina G. International Reserves and Global Interest Rates. Journal of International Money and Finance, 2017, vol. 74, pp. 371–385. URL: Link
Eichler S., Roevekamp I. A Market-Based Measure for Currency Risk in Managed Exchange Rate Regimes. Journal of International Financial Markets, Institutions and Money, 2018, vol. 57, pp. 141–159. URL: Link
Liu T., Lu D., Woo W.T. Trade, Finance and International Currency. Journal of Economic Behavior & Organization, 2019, vol. 164, pp. 374–413. URL: Link
