Digest Finance

The Future of Monetary Integration in the EEU

Vol. 23, Iss. 3, SEPTEMBER 2018

PDF  Article PDF Version

Received: 1 July 2017

Received in revised form: 5 December 2017

Accepted: 12 December 2017

Available online: 28 September 2018


JEL Classification: E41, E44, F10, F15

Pages: 297-307


Shvandar K.V. Financial Research Institute of Ministry of Finance of Russian Federation (FRI), Moscow, Russian Federation


Anisimova A.A. Financial Research Institute of Ministry of Finance of Russian Federation (FRI), Moscow, Russian Federation


Yakovleva I.I. Russian Presidential Academy of National Economy and Public Administration (RANEPA), Moscow, Russian Federation


Importance Almost all regions experience active processes of economic integration. As a result, national currencies become more usable for international payments. The trends are observed in the Eurasian Economic Union (EEU), with the Russian ruble obviously dominating the other currencies.
Objectives We identify factors that streamline invoicing processes denominated in national currencies throughout the EEU.
Methods We refer to China to analyze the main reasons for using the home currency in international payments, scrutinize the payment mechanism under stringent constraints on the currency laws. Summarizing and analyzing the renminbi internationalization practices, we conclude on the most important factors that intensified payments in national currencies throughout the EEU.
Results The article names key factors making the countries use their home currencies to close trade deals. We also express our opinion on the future of payments denominated in the Russian rubles and EEU currencies.
Conclusions and Relevance National currencies are used for international invoicing purposes due to profound trade ties with partners and accessibility of finance, stability of the exchange rate and intention to reduce the USD dominance. The Russian ruble becomes more influential throughout the EEU due to a special status of Russia in the EEU. Russia is the main supplier of energy resources, having the most developed financial market and being free from any legislative barriers to making payments in national currencies throughout the EEU countries.

Keywords: exchange rate, currency internationalization, trade invoicing, inflation, monetary policy


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