The use of a single currency in many countries has both advantages, and disadvantages. Among economists, opinions on the effects of introduction of such currencies vary – since the understanding and valuation of many aspects will take many years, the head of the analytical department at AMarkets Artem Deev notes. However, we have a good example – the euro. It was introduced in 1999, and then all major European economies switched to it in non-cash payments. And a couple of years later, cash also began the same movement: euro bills and coins replaced national currencies of many countries.
How has this affected the EU economy, what has changed? First, the risks have decreased, related to exchange rates, the expert argues. And this, in turn, made it possible to facilitate investment between countries. This, by the way, is one of the most important merits of the euro. After all, the risk of changing the exchange rate has always made investments outside of own currency zones – and even imports/exports – a very risky enterprise.
Russia now needs to attract capital – both companies and individuals.
Therefore, such a bonus would not hurt.
Of course, such an effect will be more noticeable in countries with more liberal markets – but when markets are more strict and conservative, on the contrary, it can play the negative. Nevertheless, the single currency establishes price parity, removes the barrier of conversion of national currency and makes financial markets more sustainable. We saw all this on the example of the euro, Artem Deev emphasizes.
“What is needed to create a successful international currency? Strong economy, advanced trade relations, and prospective markets. All this now BRICS has at its disposal, – the analyst said to Invest-Foresight. – In my opinion, if this commonwealth decides to issue its own currency, it will be in great demand! Moreover, unlike the euro, it is not challenging the national currency of many countries, and is needed only for settlements in international trade. So the introduction of such a currency will be quite simple. The only remaining question is, who will manage it? I still see that China will, being the owner of the strongest and most stable economy throughout the BRICS.”