Head of CBA: The issue of pricing is important in the mutual trade of EAEU countries rather than net settlement in national currencies

ArmInfo.The issue of pricing is important in the mutual trade of EAEU countries rather than net settlement in national currencies. On June 19, Governor of the Central Bank Arthur Javadyan stated this in the National Assembly of Armenia, answering the question about the possibility of using the national currencies of the EAEU countries in mutual trade in strategic goods.

According to the head of the Central Bank, currently a working group is working intensively on the implementation of this project. But here, as Artur Javadyan stressed, it is important to decide on the issue of pricing, and not the net transfer of money. "Money can be transferred today, but without an understanding of pricing, the project will become a meaningless and useless waste of funds. I myself came up with a similar initiative 5 years ago, because if pricing is determined in US dollars and not, say, in rubles, then the whole point of the project will be lost, " Arthur Javadyan said. However, according to him, there are no obstacles to the use of calculation mechanisms in national currencies. "Sites for this are being created, and they will work very soon," stated the country's chief banker, adding that the Interstate Bank of the CIS could be one of the sites, and a proposal was received from the Eurasian Development Bank. Meanwhile, as previously reported by Tigran Sargsyan, chairman of the Board of the Eurasian Economic Commission, favorable conditions for switching to settlements in national currencies between the EEU countries will be created by 2025. "I think that after we have harmonized financial markets, by 2025 this will create the necessary legal framework, which, in turn, will create, primarily for business, favorable conditions for the transition to calculations in national currencies," he said. According to T. Sargsyan, over the past four years, settlements in trade in national currencies between the EEU countries have increased from 60% to 75% of the total settlement volume. The chairman of the EEC collegium noted that this is a very serious advance, but for a complete transition it is necessary to make the calculations profitable for the business.

"This means that the focus of our attention should be on the topic of harmonization of legislation in the financial sector - in particular, in 2025 we should form a common financial market. The presidents of the EAEU countries instructed the central banks in December 2016 to work with governments and the EEC developed the concept of forming a common financial market and submitted it for approval. Our central banks are preparing this document. We hope that this year they will complete the work, " T. Sargsyan said. Also, according to him, it is necessary to create new financial instruments in national currencies that are demanded by business, create a more favorable financial infrastructure and make profitable use of settlements in national currencies. "And, of course, it is necessary to develop joint areas of activity in order to increase the number of contracts themselves. The field for payments in national currencies will automatically expand. In addition, there are areas where goods from the EEU countries are traditionally offered in dollars - let's say when we talk about the gas market "he said.