Wednesday, January 10 2018 14:55
Alexandr Avanesov

There are no instruments in the structure of the stock markets of Russia and Armenia allowing to hedge the risks of transactions in the exchange of currencies of the countries of the EAEC

There are no instruments in the structure of the stock markets of  Russia and Armenia allowing to hedge the risks of transactions in the  exchange of currencies of the countries of the EAEC

ArmInfo. Of all the EAEC countries,  the exchange futures market, in which the hedging of currency risks  can theoretically be implemented for transactions using the  currencies of the countries of the Union, exists in Russia, Armenia  and Kazakhstan. This is stated in the new report of the Center for  Integration Studies of the Eurasian Development Bank   (EADB)  "National currencies in mutual settlements within the framework of  the Unified Energy System: obstacles and prospects."

Nevertheless, according to the authors of the study, even in the  structure of the exchange-based futures markets of Russia and  Armenia, there are no tools to hedge the risks of transactions on the  exchange of currencies of the EAEC countries without using another  reserve currency as an intermediate. Even in the large market of  urgent currency transactions in Russia, the entire turnover falls on  futures for the US dollar and the euro, and there are no futures and  options contracts for the currencies of the EAEC countries. In the  extremely short-term Armenian market, only futures for the dollar are  in circulation, but deals are rare for him.

Overcoming these obstacles is possible on the path of progressive  development of the national economies of the EAEC and integration  processes, improving the investment climate, deepening the division  of labor and economic diversification, the formation of transnational  corporations operating in the Eurasian space, developing and  implementing joint investment projects, developing a single financial  market, priority in the integration processes for small and  medium-sized businesses. 

Thus, in terms of recommendations, a clear answer is given -  "evolution is better than revolution".  Integration in the monetary  and financial sphere should follow the economic basis of integration:  the elimination of numerous exemptions and restrictions in mutual  circulation, the construction of links between economic actors with  each other, as well as the logistical and transport links of the EAEC  countries, the development of common labor and capital markets.  Respondents agree that in such conditions, any "running ahead" with  the promotion of currency integration will not only not accelerate  the development of common markets, but, on the contrary, create  additional risks.

The specific weight of the Russian ruble in the currency structure of  payments in the EAEC has increased over the past six years from 56%  to 75%. The share of the dollar for the same period decreased from  35% to 19%. At the same time, the dollar remains the dominant  currency when paying for goods and services between the EAEC states,  except Russia. It takes up to 50-80% depending on the vector of  transactions.


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