Money reform in Russia 1993

1.

MONEY REFORM IN
RUSSIA 1993
Completed by: Maxim
Zotkin

2.

Goals
• Fighting inflation
• Withdrawal from circulation of Soviet-
style paper money
• Separation of the monetary systems of
Russia and other CIS countries

3.

Conditions
The terms of the monetary reform were set
out in the Telegram of the Central Bank of
the Russian Federation N 131-93 of July 24,
1993. The telegram was signed by the
Chairman of the Central Bank of the RSFSR
(Rostsentrbank) Viktor Gerashchenko.

4.

Conditions
• Russian citizens (according
to their registration in their
passports) could exchange
money during the entire
period. The exchanged bills
in the amount of no more
than 100 thousand rubles
were handed out. All
money in excess of this
amount was credited to an
account with Sberbank for
six months with the accrual
of a set interest on the
deposit.
5000 rubles 1992 г. — old money

5.

Conditions
• Enterprises could exchange
cash within the cash balances
at the beginning of the day on
July 26 and were obliged to
hand it over to the bank
during the banking day on
July 26. The amount of
money handed over should
not exceed the limit set for the
cash
desk
of
this
organization, and the amount
of trade proceeds received at
the cash desk at the end of
the day on July 25.
5000 rubles 1993 г. — new money

6.

Results
• During the 1993 reform, 24 billion banknotes were seized.
• The reform never strengthened the ruble.
• Serious complications with neighbors, as their currencies
were pegged to the ruble.
• The rejection of the ruble and the formation of national
currencies in the CIS countries.
• Suppression of uncontrolled printing of old banknotes
outside of Russia.
• More efficient money supply management.

7.

• «We wanted the best, but it
turned out as always ”- a
phrase uttered by Viktor
Chernomyrdin, Prime
Minister of the Russian
Federation on August 6,
1993, at a press
conference, describing how
the 1993 monetary reform
was being prepared.