‘No Plans Yet’ for Armenia to Adopt Single EEU Currency

A statue symbolizing the dram, outside the Central Bank building in Yerevan. (Photo: Photolure)


YEREVAN (RFE/RL)—Armenia has no plans nor has conducted any negotiations on a single Eurasian Economic Union (EEU) currency, a Central Bank official said on Wednesday, reacting to Russian President Vladimir Putin’s statement on the possibility of a monetary union.

On March 10, Putin reportedly ordered the Central Bank of Russia and the Russian Government to work in conjunction with the national banks of the EEU member states to determine by September 1 “the further directions of integration in the currency and financial spheres.” He also said that “the feasibility of establishing a monetary union within the framework of the EEU in the long term should be considered.”

The EEU was founded and launched by Russia, Belarus and Kazakhstan on January 1. Armenia joined the post-Soviet economic grouping on January 2.

“There is no document among those signed [by Armenia] within the framework of its accession to the EEU that would concern the feasibility study or prospects related to this matter,” Armenian Central Bank Board member Armenak Darbinian told RFE/RL’s Armenian Service (Azatutyun.am).

“At this moment there are no such plans and there are no such discussions at the Central Bank,” he added.

Still last April the Russian newspaper “Moskovsky Komsomolets” wrote, citing its sources in the Eurasian Economic Commission, that the EEU will have its single currency and that it will be called “altyn.” The publication claimed that unofficially the tentative name of the currency had been approved by the leaders in Russia, Kazakhstan and Belarus. Sources also said that there were plans to create a Eurasian Central Bank with supranational powers that would be headquartered in Almaty, Kazakhstan.

“There have been no negotiations, no formal discussions in this direction yet. I would say more: the issue of forming a single financial market regulator was discussed within the framework of the EEU and it should happen after 2025. During this time, national laws and regulations should be harmonized and only then the issue can be put on the agenda,” said Darbinian, expressing the view that it will take years to ensure that conditions are created for switching to a single EEU currency.

“It cannot be an administrative decision. This requires relevant developments in the economy and in the financial markets,” the Central Bank official concluded.

Authors

Discussion Policy

Comments are welcomed and encouraged. Though you are fully responsible for the content you post, comments that include profanity, personal attacks or other inappropriate material will not be permitted. Asbarez reserves the right to block users who violate any of our posting standards and policies.

4 Comments

  1. Hratch said:

    Just as I’ve been predicting for months, it was way too obvious that Tsar Putin would eventually introduce a common currency. And again, you heard it here first, a common passport, a common foreign policy and a common military are next to follow. Every vestige of nationalism and its symbols must be eradicated in order to restore the new CCCP regional world order. The show has just begun folks, the plan is in full motion.

    Besides, I don’t think the decision of whether to adopt the new currency is up for discussion. Now that Armenia is a signatory partner in the EEU it must abide by all its rules. How would it be that all members trade in the new currency while Armenia insistence on using the Dram? It defies logical and, not to mention, the ire of Tsar Putin. Armenia will adopt the new currency either voluntarily or under duress. Either way, the decision will not be independent, it will be dictated to us. The same way we were dictated to abandon the EU overnight.

    • GeorgeMardig said:

      All EU members use Euro, I don’t see anything inventive in this, it’s logical that all EEU members use the same currency.

  2. Gurgen said:

    A single currency for an economic pact makes sense, especially for Armenia since the Armenian Dram is too dependent on the Dollar.

  3. Pingback: The Eurasian Economic Union’s Plans for a Common Currency: Altyn or Euraz? | libertasblogs

*

Top