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IMPLEMENTATION OF NATIONAL CURRENCIES IN FOREIGN TRADE SETTLEMENTS: PREREQUISITES, LIMITATIONS, PERSPECTIVES

Abstract

A tendency to implement national currencies in foreign trade settlements on a wider scale reflects a multipolar essence of the modern world. It is quite logical and natural result of increasing risks lately connected with the key world currencies. Different countries are interested in reducing dependence on the international currency and financial markets when global geopolitical situation is getting worse.

The article examines prerequisites and preconditions for expanding the scope of implementation of national currencies in foreign trade settlements between different countries. The analysis of practical experience of implementation of national currencies in foreign trade settlements has allowed to highlight the «bottlenecks» and problems hindering more active implementation of national currencies by the national participants of foreign economic relations. Current trends and perspectives of implementation of national currencies in foreign trade settlements are discussed in general terms by taking into consideration Russian rouble and Renminbi.

The analysis substantiates the need to eliminate existing law, administrative, financial and economic barriers hampering the national participants of foreign economic relations to efficiently conduct business activities in the domestic financial markets, and to ensure favourable market conditions by the national financial institutions. 

About the Author

I. A. Balyuk
the Financial University under the Government of the Russian Federation, Moscow
Russian Federation
PhD (Economics), associate professor of the World Finance Chair


References

1. Society for Worldwide Interbank Financial Telecommunications (SWIFT) [Soobshhestvo vsemirnyh mezhbankovskih fi nansovyh telekommunikacij (SVIFT)]. URL: http://www.swift.com (access as of 16.07.2015).

2. Bank of Russia [Bank Rossii]. URL: http://www.cbr.ru (access as of 15.07.2015) (In Russ.).

3. Potemkin А.I. On increasing importance of the Russian rouble in international settlements [Ob usilenii roli rossiiskogo rublia v mezhdunarodnykh raschetakh]. Den’gi I kredit/Money and credit. 2010. No.8. Pp. 3–10. (In Russ.).

4. Russian Agency for Export Credit and Investment Insurance [Rossiiskoie agentstvo po strakhovaniiu eksportnykh kreditov i investitsii]. URL: http://www.exiar.ru (access as of 15.07.2015) (In Russ.).

5. Moscow Exchange [Moskovskaia Birzha]. URL: http://www.moex.ru (access as of 16.07.2015) (In Russ.)

6. VTB Group [Gruppa VTB]. URL: http://www.vtb.ru (access as of 15.07.2015) (In Russ.).


Review

For citations:


Balyuk I.A. IMPLEMENTATION OF NATIONAL CURRENCIES IN FOREIGN TRADE SETTLEMENTS: PREREQUISITES, LIMITATIONS, PERSPECTIVES. Finance: Theory and Practice. 2015;(5):127-133. (In Russ.)

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ISSN 2587-5671 (Print)
ISSN 2587-7089 (Online)