Expert: The share of AMD in mutual settlements between Armenia and  Russia is 4%

ArmInfo. Armenia, like Kyrgyzstan, has made quite good progress in terms of the share of national currencies in mutual settlements, but these are rather point  stories.  Natalya Lavrova, Head of the Department of Macroeconomic  Analysis and Statistics of the Project Unit of the Eurasian Fund for  Stabilization and Development (EFSD), said this during the  presentation "Enhancing the role of the national currencies of the  EAEU in international settlements".

"If you look at the trade between Armenia and Russia, it should be  noted that the share of the dram is quite high - about 4%. The  question is how to further increase these volumes, what incentive  measures should be implemented. And here it is extremely important to  focus not on the success of a separate national currency, but on  reducing the level of dollarization in the countries and economies of  the EAEU, '' she said.  At the same time, according to Lavrova, the  share of the dram is insignificant within the framework of mutual  settlements of the EAEU, and in most cases is concentrated in the  Russian economy. "To increase this share, the Armenian economy should  probably focus on promoting its currency everywhere, not being  limited to Russia, but working in this direction of other countries  with whom there is active trade," the expert added. At the same time,  Lavrova said that within the EAEU, 74% of mutual trade is carried out  in national currencies, where the lion's share is in the ruble. In  this regard, she stressed that there is potential for further growth.  In the internal mutual settlements of the EAEU countries, following  the results of the last 7 years, payments in national currency  increased from 63% in 2013 to 74% at the end of 2019.At the same  time, over the last five years, the share of the dollar has decreased  from 25% in 2015 to 19% in 2019, and the euro occupies a modest place  in the mutual settlements of the Union countries - about 7% over the  period under review.

One of the main obstacles to strengthening the role of the national  currencies of the EAEU countries, according to EFSD experts, remains  macroeconomic problems. First of all, the persisting high transaction  costs of using national currencies stand out, which is associated  with a low level of economic diversification, relatively weak  macroeconomic stability in a number of countries in the region and an  insufficient level of development of financial markets.

To recall, the Eurasian Development Bank (EDB) is an international  financial organization that promotes the integration and development  of the participating countries: Armenia, Belarus, Kazakhstan,  Kyrgyzstan, Russia and Tajikistan. The authorized capital of the EDB  is $ 7 billion. The bank was established in January 2006 by Russia  and Kazakhstan, with its headquarters in Almaty. The main share in  the EDB's portfolio is occupied by projects with an integration  effect in the areas of transport infrastructure, energy, chemical and  mining industries, and mechanical engineering.  The Eurasian Fund for  Stabilization and Development (EFSD) in the amount of $ 8.513 billion  was established on June 9, 2009 by the governments of the same 6  countries. The goals of the EFSD are to assist the participating  states in overcoming the consequences of the global financial crisis,  in ensuring their economic and financial stability and supporting the  integration processes in the region. The EFSD member states endowed  the EDB with the functions of the Fund Asset Manager and signed an  Agreement with the Bank on the management of the EFSD funds.