De-dollarization in the EAEU Member States

• Main Author: Elena Dudkova
• Format: Article
• Language: Russian
• Published: Institute of Europe Russian Academy of Sciences 2019-10-01
• Series: Научно-аналитический вестник Института Европы РАН
• Subjects: dollarization; de-dollarization measures; the role of the dollar; dollarization calculations; the de-dollarization of the world markets; regional currency; single currency area
• Online Access: http://vestnikieran.instituteofeurope.ru/images/Dudkova52019.pdf

Despite the collapse of the Bretton woods agreement, the US dollar was able to firmly consolidate its dominant position in the world monetary system. The use of foreign currency (in particular, the US dollar) mainly in front of the national currency in the post-Soviet space in addition to international payments within the state creates serious problems for the national economy. This is manifested in a decrease in state revenues from the exchange rate, which complicate the implementation of effective monetary policy, prevent monetary methods of inflation control, increase the volatility of the exchange rate and stimulate the shadow economy. This requires an effective strategy for the implementation of the de-dollarization of the economies of the EAEU member States. In this connection, the paper considers the process of de-dollarization as a global phenomenon in the evolution of the world monetary system, and analyzes the main trends in monetary and financial relations of the countries of the Eurasian Union. The change in the paradigm of the global monetary system could reduce the role of the dollar in the world economy, with an increase in the status of national currencies and the possible creation of a new regional currency.