The emergence of a single currency requires appropriate political and economic preconditions. And if the first ones develop slowly, the second is more difficult. In this respect Interview with socialbites.ca said Sergei Storchak, senior banker at VEB.RF, former Deputy Minister of Finance of Russia.
“Judging by the statements of the leaders of our countries, the political prerequisites for the emergence of a single BRICS currency are gradually taking shape. The situation is more complicated due to economic prerequisites. The depth of mutual penetration into our economies when countries specialize in the production of certain types of goods for all participants in the bloc (for example, Bulgaria was “responsible” for electric cars, Hungary for buses, East Germany for prototypes of computers and electronic computers), as in the case of the Council for Mutual Economic Assistance, BRICS “It’s still very far away,” he explained.
True, in his opinion, the situation is changing rapidly and “therefore the dialogue on the issue of the single currency cannot be considered excessive.”
The Council for Mutual Economic Assistance was an intergovernmental economic organization that operated from 1949 to 1991. It was created by the decision of the economic meeting of representatives of Albania, Bulgaria, Hungary, Poland, Romania, the USSR and Czechoslovakia. Within the framework of the CMEA there was a single currency – the transferable ruble. The Bank for International Economic Cooperation was established to work with this and organize multilateral clearing on trade within the CMEA. Opened accounts in transferable rubles for banks authorized by CMEA member countries. VEB.RF – Including predecessors of Vneshtorgbank and then Vnesheconombank.
On September 1, Storchak said that at the current stage, talk of creating a single BRICS currency is rather utopian.
Previously Storchak saidWhat will happen to the dollar?