Xu Polin, head of the Center for Russian Economy at the Research Institute for Russia, Eastern Europe and Central Asia of the Chinese Academy of Social Sciences, said this, inbusiness.kz reports. with reference to “RIA Novosti“.
As the RBC newspaper reported earlier, a group of Russian economists offered to think about creating a new payment unit for trade between the Russian Federation and friendly countries. Countries of the Eurasian Economic Union (EAEU), China, India, Iran and Turkey may be interested in forming a dollarless settlement system, the publication explained.
If a number of friendly countries want to launch a new payment unit, such as the euro, it is unlikely to have good prospects, since there is no supranational force limiting this currency, the expert notes .
He also noted that the currency itself is a form of economic sovereignty, and many EU countries complain that EU fiscal discipline limits their ability to use the currency as a way out of trouble.
According to him, as for a single currency similar to the euro within the EAEU, it “will not only face the current problems of the euro, but given the insufficiently large size of the economy of the association , it will be difficult for it to become an international currency outside the union.
“Most likely the result will be an expanded version of the rouble. In the end, this will not solve the sanctions problem,” Xu Polin said.
He noted that today in the world there is a need for more competitive international currencies, so a more realistic approach is to expand settlements in national currencies.
