Russian Money

The history of Russian money began more than 1000 years ago. The first Russian coins appeared when Russia was converted to Christianity. The gold and silver pieces were first made under Grand Duke Vladimir Svyatoslavovich (late 10^th - early 11^th century). Then there was a long "coinless" period. Minting was resumed in the 1380s, under Grand Duke Dmitry Donskoy of Muscovy.

The Russian monetary system was founded in the early 16^th century. It laid the foundations of national accounting and the present-day ruble. In the 16^th century the chief currency unit was the silver kopeck. It depicted a horseman with a lance, which was Russia's emblem and the symbol of grand-ducal power. After the 1535-1538 reform of Yelena Glinskaya, a single monetary system was formed for the centralized Russian State. The ruble contained 100 kopecks.

In the 17^th century Peter the Great brought into circulation various denominations: one-ruble, fifty-kopeck, quarter, ten kopeck, and other coins. Gold and copper pieces were produced in addition to the traditional silver coins. Coins were minted by machines.

In the 18^th century banknotes were introduced in circulation by Tsarina Catherine II. In the 19^th century the reform of Finance Minister Count Kankrin (1839-1843) was the first step towards turning paper money into money backed by precious metal reserves. The silver ruble was recognized as the principal monetary unit.

In 1892 Sergei Witte became finance minister. He did much to strengthen the ruble. At that time Russian paper banknotes were backed by gold reserves worth 1.5 billion rubles. The Russian financial system was founded on the basis of scientifically computed paper money emission rates. Thanks to Witte's reform, Russia integrated into the global financial system. The ruble became convertible.

The post-revolutionary period was characterized by great hyperinflation. The gold reserves in the country were rebuilt thanks to the New Economic Policy. The chervonets was the new unit equivalent to 10 pre-revolutionary rubles. It was in circulation until 1928. Afterwards, the government resumed its practice of high imission rates, and inflation returned. The Soviet ruble became an exclusively domestic legal tender.

During the first period of perestroika the inflation rates were very high. At present the Russian government is taking steps to stabilize the Russian currency.

Notes:

Legal tender - законное платежное средство.

11. Выпишите из текста английские эквиваленты следующих слов и выражений:

Была обращена в христианство; серебряные и золотые монеты; великий князь; чеканка монет; Московия; денежная система; бухгалтерский учет; изображала всадника с копьем; медные монеты; деньги, обеспеченные запасами драгоценных металлов; главная денежная единица; уровень эмиссии (выпуска) бумажных денег; законное платежное средство; темпы инфляции.

12. Письменно ответьте на следующие вопросы:

1. When were the first gold and silver coins minted?

2. What was the chief currency unit in the 16^th century?

3. What was the first monetary unit in the 19^th century?

4. Why did Russia integrate into the global financial system at the end of the 19^th century?

5. When was the chervonets in circulation?

13. Опишите современную денежную систему России.