TRANSFORMATION OF FUNCTIONS OF THE STRATEGIC RESERVES OF RAW MATERIALS IN THE CONDITIONS OF ECONOMIC INSTABILITY

In order to ensure national security, uninterrupted functioning of the economy, market regulation and price stabilization, practically all countries of the world have created strategic reserves of raw materials. To finance the costs of maintaining and increasing strategic reserves of raw materials,...

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Bibliographic Details
Main Authors: Babayev, Azer, Linkevich, Yelena
Format: Conference Proceeding
Language:English
Subjects:
Commodities
Consumption
Cost control
Credit policy
Currency
Economic growth
Economics
Exports
Financing
Funds
Government procurement
Government purchasing
Hydrocarbons
International organizations
International trade
Markets
National security
Oil reserves
Price regulations
Price stabilization
Pricing
Purchasing power
Raw materials
Regulation of financial institutions
Reserves
Security
Stability
Stabilization
State budgets
Stocks
Supranationalism
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Summary:In order to ensure national security, uninterrupted functioning of the economy, market regulation and price stabilization, practically all countries of the world have created strategic reserves of raw materials. To finance the costs of maintaining and increasing strategic reserves of raw materials, it is advisable to attract funds from the public through the issuance of new financial assets secured by state-controlled stocks of raw materials. For example, receipts giving the right to receive a certain amount equal to the value of the "basket of goods". The value of the asset should be determined on the basis of the range and volume of goods included in the stabilization reserves, as well as their market prices. Being provided with strategic reserves such financial assets can be used to protect cash savings from inflation. The proposed asset will be particularly attractive in a crisis with a limited choice of reliable instruments for investment. In addition, the expansion of government procurement of raw materials in a crisis situation will provide support for certain sectors of the economy. The funds raised can also be used to take measures to ensure the stability of a new financial asset. This will reduce the financial burden on the state budget for the formation of strategic reserves. The introduction of our proposed system will improve the efficiency of commodity price regulation in national economies, significantly expanding the countries' ability to conduct joint commodity interventions to influence price movements in international commodity markets.
ISSN:1849-6903
1849-6903