A redenomination of the ruble will turn Russia into Zimbabwe – expert

Currency rebasing exercises are mostly done by countries hit by severe poverty and recession. But Russia should rather not imitate countries like Zimbabwe, journalist Semyon Novoprudsky said.

According to him, supporters of the ruble’s redenomination cite large amounts of cash accumulated in Russia as their argument. However, a monetary reform is the last thing Russians want, the expert emphasized.

People are already exhausted after the lockdown that slashed their incomes, he pointed out. Fortunately, the Bank of Russia immediately reacted to the redenomination rumors with a statement saying it has no such reform on the table.

Semyon Novoprudsky quoted the Bank of Russia as saying that the number of banknotes in circulation and their denominations are just fine, reports.

The expert added that Russians’ confidence in the ruble remains quite high and that most people prefer not to trouble trouble. A redenomination would certainly mean trouble, so it’s better be avoided. There is no reason whatsoever to even start a public discussion of this topic, he concluded.

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