Bank of Russia slams initiative for banning use of USD and EUR for business operations

An initiative that seeks to prohibit Russian companies from conducting any operations in US Dollars and Euros has sparked the discontent of the Bank of Russia.

Russia’s “Megaregulator” today published a special comment regarding a proposal that comes from one of the members of the State Duma – the lower chamber of the Russian parliament. According to a report by “Izvestia”, Evgeny Fedorov is pushing for a set of unpopular measures, including prohibiting Russian businesses from conducting any operations in USD and EUR in Russia, as well as providing and receiving loans in these currencies. Mr Fedorov claims that the use of USD and EUR in Russia is running counter the national currency, the Ruble.

The Bank of Russia is definitely disagreeing with the proposal. In its comment, the regulator says that such a move would only lead to the emergence of a “grey market” or “black market” for currencies. In addition, all sorts of illicit and criminal activities will proliferate.

The central bank concludes that such measures have not led to anything positive for the national economies of the countries where they were implemented.

To view the original commentary, click here.

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