Redenomination of the ruble will send prices up – financial ombudsman

Credit: Vladimir Trefilov | RIAN

A redenomination of the ruble has already happened de facto, economist Pavel Medvedev, Russian financial ombudsman, said quoted by Sobesednik weekly.

A 100:1 rebasing of the national currency (an increase in the denomination of banknotes by 100 times), proposed by economist Alexander Razuvayev, is already here – kopecks are virtually gone from circulation, and a ruble is now the lowest-value coin. But one ruble is worth almost nothing because no goods can be bought with it.

Discussions about redenomination have been going on for a long time in the banking and economic community, Pavel Medvedev noted. The issue was raised in 2011, because even then, the banknotes were extremely inconvenient. However, this is no longer a problem because people are increasingly using bank cards.

In general, Medvedev has a negative attitude to the redenomination idea. He believes the move will do little except irritate Russians, and will also be a nightmare for senior citizens who still remember similar moves of past years, the 79-year-old financier said. According to his forecast, it will send prices up, let alone the “psychological” risks arising from the instability of Russia’s economy.

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