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Sergei Glazyev proposes to form Eurasian monetary and financial system

Sergei Glazyev, Minister for Integration and Macroeconomics of the Eurasian Economic Commission (EEC), voiced his proposals for creation of a monetary and financial system of the Eurasian Economic Union based on national currencies. The Eurasian Economic Commission reported.

According to him, the Eurasian Economic Union is working to switch to mutual settlements in national currencies. But their share still remains very modest: about 50 percent within the union and about 15 percent of settlements with China.

«Russia and China have created their own payment systems, a system for electronic exchange of information between banks, but business participants are still very sluggish in using these infrastructure elements and still work using foreign currencies. I believe that it is necessary to radically reverse the situation, to create our own Eurasian monetary and financial system. It would insure us against risks and would be reliable, transparent, convenient, efficient and would not be burdensome for the participants of economic activity,» stressed Sergei Glazyev.

He also voiced his suggestions on achieving this result. First of all, in his opinion, it is important to stabilize the rates of national currencies. The EEC Minister is sure that there is a need to sign an agreement between the EAEU states to ensure the stabilization of exchange rates, the creation of a «currency snake» similar to the one that worked in the countries of the European Union.

In addition, it is necessary to form Eurasian exchanges and pricing mechanisms, as well as provide advantages for settlements in national currencies. Sergei Glazyev proposed not to extend currency control to settlements in national currencies and to consider issues of lending and financing mutual trade and joint investments.

«I hope that we will be able to work it out as part of the implementation of Strategy 2025. Development of joint development programs, joint infrastructure projects, formation of investment projects — symbols of Eurasian integration, expansion of production cooperation are among the already approved directions of the document. All this requires creation of powerful sources of long-term credit,» the EEC Minister said.

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