Thursday, April 10 2014

 The single currency for the countries of the Customs Union and the currently formed Eurasian Economic Union will be introduced not earlier than in 2020, say AmRating Armenian Rating Agency analysts. They think introduction of the single currency conditionally called altyn will become possible only after successful integration of the Customs Union counties and under compulsory condition of full liquidation of the so-called waivers.  

Meanwhile, the analysts think the CU countries and the countries preparing to access the Union are seriously concerned over the big countries' measures to protect the internal market through numerous waivers from the customs regime as well as over existence of numerous technical regulations impeding development of the common market. In addition, before creating a common monetary market, it is necessary to take measures to unify the taxation and monetary policies and bring the countries to a similar macroeconomic environment. Experts think the 'altyn zone' may be created between Russia, Belarus and Kazakhstan at the first stage. Later, other EurAsEC member and observer countries will be allowed to join it subject to strict macroeconomic conditions.

According to the Russian media, the CU countries - Russia, Belarus and Kazakhstan - may adopt a single currency within the nearest future. The preliminary name of the currency - altyn - was proposed by Kazakh President Nursultan Nazarbayev and supported by Vladimir Putin. Unlike then, Belarus President Lukashenko displayed certain caution over the issue and the countries decided to avoid hasty decisions. All the documents regulating introduction and circulation of the new currency may be signed within the Eurasian Economic Union next year. Russian experts say a single currency will facilitate financial calculations between the countries and allow avoiding bank commissions. In addition, the countries plan to establish a Eurasian Central Bank and reduce the powers of the Central Banks of Russia, Belarus and Kazakhstan. Armenia, Kyrghyzstan and Tajikistan are expected to join the economic union shortly. These countries will have to introduce altyn as well.