DUSHANBE, March 11, 2010, Asia-Plus — State Secretary of so-called Russia-Belarus Union State, Pavel Borodin told media in Minsk, Belarus on March 10 that the introduction of a common currency for the Customs Union of Belarus, Russia and Kazakhstan is quite possible. According to Belarus media, he said, “The single currency can be introduced not only for the Customs Union but also for the entire post-Soviet area.” In his words, the United States has issued $100 trillion worth of cash and securities. BELTA quoted Borodin as saying, “The country’s annual GDP totals almost $14 trillion. It turns out they need to work for free for the next seven years. Meanwhile, we have everything necessary to materialize the single currency idea.”
Commenting on this subject, Firouz Saidov, head of the social sphere and labor market department within the Center for Strategic Studies under the President of Tajikistan, told Asia-Plus today that introduction of the common currency for the CIS area is unreal and will scarcely take place in the coming 40-50 years.
To introduce the common currency it is necessary, first of all, to create the single legislative foundation, he noted. “We can speak about this only when our countries have the common customs system, the common economic space and visa-free regime,” said the senior expert from Tajik think tank, “There is no reason in introducing the common currency until these mechanisms work.”
Saidov considers that introduction of the single currency for the CIS area will have a pernicious effect on Tajikistan’s economy.
“We went through this in 1992-1994 already, when Tajikistan joined the ruble zone,” said the expert, “If Tajikistan joins the CIS common currency area, it will turn into a dump for goods from more economically developed members nations of the CIS.”
