Armenia will have to use single currency to carry out its trade with partner countries, MP says
YEREVAN, September 29. / ARKA /.Like other member states of the Russian-led Eurasian Economic Union (EEU) sooner or later, Armenia will have to shift to using a single currency in carrying out its trade with partner countries or, at least, use a single settlement system, Mikael Melkumyan, an Armenian parliament member from the Prosperous Armenia party, said today.
Earlier this month, Armenian prime minister Hovik Abrahamyan speaking a meeting of prime ministers of the EEU member states in Belarus, floated the idea of reducing the high degree of “dollarization” in trade among Russia, Kazakhstan, Belarus, Armenia and Kyrgyzstan, advocating the shift to Russian rubles in “carrying out mutual trade in strategic goods.’
According to Melkumyan, the EEU, like any other economic union, envisages the formation of a united economic environment, and settlement systems are an integral part of this environment. He said Abrahamyan’s proposal to this effect was well-thought stemming from Armenia’s economic interests.
According Melkumyan, Abrahamyan meant trade in strategically important products - in the first place, it is energy resources.
‘We import 1.7 billion cubic meters of natural gas from Russia a year worth $350 million. If we add also oil products – gasoline and diesel fuel - the figure grows to about $650 million," he said, adding, that settlements in US Dollars in this amount is not profitable for Armenia.
A National Assembly expert Parsyan said when signing the EEU membership agreement Armenia did not assume commitments on the use of single currency.
"This will be possible only after the creation of a unified financial system, and before that it is necessary to build a free market economy. Without doing so the transition to a single currency is not possible", he said.
According to him, Belarus and Kazakhstan have long used Russian ruble in trading with Russia, and this has a positive effect on their economies.
"Belarus pays for 87% of exports and 65% of imports in rubles and Kazakhstan pays for 51% of exports and 75% of imports. As you can see, making settlements in rubles benefits these countries. I think we should use the experience of Belarus", he added.
Parsyan stressed that before the transition to settlements in Russian ruble Armenia will have to revise all the international treaties and recalculate everything in rubles.
"And this is quite a long and painstaking work, » he said. -- 0--
Earlier this month, Armenian prime minister Hovik Abrahamyan speaking a meeting of prime ministers of the EEU member states in Belarus, floated the idea of reducing the high degree of “dollarization” in trade among Russia, Kazakhstan, Belarus, Armenia and Kyrgyzstan, advocating the shift to Russian rubles in “carrying out mutual trade in strategic goods.’
According to Melkumyan, the EEU, like any other economic union, envisages the formation of a united economic environment, and settlement systems are an integral part of this environment. He said Abrahamyan’s proposal to this effect was well-thought stemming from Armenia’s economic interests.
According Melkumyan, Abrahamyan meant trade in strategically important products - in the first place, it is energy resources.
‘We import 1.7 billion cubic meters of natural gas from Russia a year worth $350 million. If we add also oil products – gasoline and diesel fuel - the figure grows to about $650 million," he said, adding, that settlements in US Dollars in this amount is not profitable for Armenia.
A National Assembly expert Parsyan said when signing the EEU membership agreement Armenia did not assume commitments on the use of single currency.
"This will be possible only after the creation of a unified financial system, and before that it is necessary to build a free market economy. Without doing so the transition to a single currency is not possible", he said.
According to him, Belarus and Kazakhstan have long used Russian ruble in trading with Russia, and this has a positive effect on their economies.
"Belarus pays for 87% of exports and 65% of imports in rubles and Kazakhstan pays for 51% of exports and 75% of imports. As you can see, making settlements in rubles benefits these countries. I think we should use the experience of Belarus", he added.
Parsyan stressed that before the transition to settlements in Russian ruble Armenia will have to revise all the international treaties and recalculate everything in rubles.
"And this is quite a long and painstaking work, » he said. -- 0--