YEREVAN, February 15. /ARKA/. If members of the Russia-led Eurasian Economic Union shift to mutual settlements in their national currencies that would significantly reduce Armenian banks’ transaction costs, economist Artak Manukyan said to ARKA.
According to Manukyan, mutual settlements in national currencies is an integral integration stage. “For Armenia it will certainly be a profitable process. In trading with Russia Armenia has to convert the bulk of funds to hard currency. And if we shift to settlements in national currencies, that would reduce transaction costs and foreign exchange risks,” he said.
According to Manukyan, shifting to mutual settlements in national currencies would increase the competitiveness of the EEU member countries in terms of reducing currency risk when converting their currencies to USD and would also promote cooperation between them.
He said also he was skeptical that Russia would agree that Armenia and some other member of the EEU pay for energy resources in their national currencies. According to him, Russia will be reluctant to lose a source of hard currency.
Manukyan said the Armenian government should therefore be more pro-active in talks with Russian counterparts to press for the most advantageous option. -0-
