The Bolsheviks, having come to power, almost immediately issued a decree introducing a state monopoly on foreign exchange transactions. This meant that the rates of foreign currencies in the USSR were set only by the State Bank. Foreign exchange transactions within the country were minimized, and the official dollar exchange rate was tightly controlled by the state.
The Soviet ruble was a closed currency, and throughout the entire period of the existence of the USSR, it was possible to exchange rubles for dollars only at the official rate. Moreover, for citizens, such an exchange was fraught with significant difficulties and was allowed only in exceptional cases.
Rules for the circulation of foreign currency in the USSR
Since all settlements on the territory of the USSR were carried out exclusively in rubles, only the State Bank had the right to sell foreign currency to citizens and redeem it from them. Other organizations could carry out similar operations only with his written permission. An exception was made only for special foreign trade shops "Berezka", where trade was allowed for dollars and Vneshposyltorg's checks.
Only citizens leaving on foreign business trips or tourist trips could buy dollars, and only a limited amount was allowed to convert. Naturally, the exchange was carried out at the officially established rates, which were published daily in the media.
How did the official and real dollar exchange rates compare in the USSR?
In 1918, the US dollar was worth 31.25 rubles, the revolution and the civil war devalued the ruble tens of thousands of times. After the monetary reform of 1924, the dollar began to cost 2.22 rubles.
Until 1936, the dollar devalued against the ruble to the level of 1, 15 rubles. After the establishment of the official rate of 1 ruble for 3 French francs, the dollar began to cost 5 rubles. This ratio lasted until the 1961 monetary reform, when the official ruble exchange rate was 90 kopecks to 1 dollar.
In the 60s-90s, the official dollar exchange rate was gradually decreasing, holding around the mark of 60 kopecks, but it was impossible to freely buy American currency at this price. Currency exchange was a criminal offense under Article 88 of the Criminal Code of the RSFSR and similar articles in the codes of other Soviet republics.
The measures set out in the Criminal Code were harsh: speculation in currency values was punishable by imprisonment for a term of 3 to 15 years, confiscation of property, and exile for up to 5 years. If operations with foreign currency were carried out on an especially large scale, the defendant could be sentenced to death. Despite this, the black market flourished. In Moscow, for example, people in the know knew where and how to buy US dollars from the farmers at a price of 3-4 rubles per dollar.
In 1991, the State Bank began selling dollars at the commercial rate of 1.75 rubles. per dollar, but on the black market the price of the dollar jumped to 30-43 rubles. In mid-1992, the currency monopoly was abolished, and the dollar exchange rate began to be established by market methods.
