Armenian economist says EEU member states should switch to mutual settlements in national currencies

YEREVAN, July 29. / ARKA /. In an interview with ARKA news agency Professor Ashot Tavadyan said members of the Eurasian Economic Union (EEU) should switch to mutual settlements of accounts for energy resources in their national currencies.

Presenting the findings of a relating research conducted by a team of experts led by him he referred to Article 64 of the EEU Treaty which says that EEU member states should conduct a coordinated monetary policy.

“I think, it is advisable that EEU member states switch to settlements in the national currencies and also to the mutual convertibility of their currencies,” said Tavadyan.

According to him, the transition to mutual settlements in the national currencies and setting the price of natural gas in national currencies will eliminate the consequences of the USD fluctuations and it will be a safeguard against hikes in electricity prices.

Tavadyan argued that EEU member states should switch to it as soon as possible. He said the switch should be preceded by a coherent monetary policy.

“This also applies to the real refinancing rate, which is higher in Armenia than in Russia. Armenia pursues the policy of tight money, which in my opinion is not conducive to economic development,’ said Tavadyan.

He also said EEU members should agree on inflation-related issues and the sooner they shift to mutual settlements in the national currencies the less costs they will have, especially energy resources importing countries.

Tavadyan said also the prices of natural gas and electricity must be determined by all EEU members jointly and this paragraph should be enshrined in law. -0-

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