Vilen Khachatryan. “In the case of single currency, the Central Bank
will lose its functions.”

April 4 2015

The Chairman of National Assembly Finance and Budget Affairs Committee
Gagik Minasyan, during the roundtable discussion on “Eurasian Economic
Prospects” held at the National Assembly, said the introduction of the
single EaEU currency will contribute to facilitation of mobility of
services, goods and capital between its member countries. Aravot.am
talked on this to economist Vilen Khachatryan. He said that the
capital mobility within the EU is happening very easily because when
dealing with a single currency, this problem is solved. “The problems
related to transition from one exchange rate to another and causing
fluctuations, thus, disappear. But there is a problem here. If a
country has high prices, these high prices are transferred to other
countries. And as for the capital and the entire transaction system,
unified system functions in a unified way and everything is done for
it.”

The economist believes that problems may arise in the process of
strengthening the EaEU countries’ central banks partnership as the
central banks of different countries are managed by different systems.
He noted that there was also a single currency during the Soviet
Union, but Armenia was able to attract more money. “Under the EaEU
market conditions, this might be more difficult, nevertheless, the
Central Bank will lose its functions, in this respect, it is negative.
I am raising the issue of financial sovereignty because, in the case
of single currency, the Central Bank cannot conduct an independent
financial policy in the monetary industry.” Ami CHICHAKYAN

From: A. Papazian