Vladimir Putin, the president of the Russian Federation, has made another step towards the establishment of an integrated currency market in the Commonwealth of Independent States (CIS).
Last week, Mr Putin signed the Federal Law On Ratifying the Agreement on Cooperation in Organising an Integrated Currency Market between Commonwealth of Independent States Member States. In August this year, the Russian president submitted the relevant bill with the State Duma, the lower chamber of the Russian parliament, and now, after the necessary discussions and approvals, the bill is officially a law.
The document seeks to put into action parts of the Plan for Implementing CIS Joint Measures to Overcome the Consequences of the Global Financial and Economic Crisis for 2009–2010. It comes several years after the agreement for cooperation in organising an integrated currency market in the CIS was signed in Ashkhabad on December 5, 2012.
Under the agreement, resident banks of the participants are given direct access to each other’s domestic currency markets to conduct interbank FX transactions on terms that are more favourable than those offered to domestic commercial banks.
This is set to encourage the use of national currencies in foreign trade payments and financial services and, hence, establish preconditions for greater liquidity in domestic currency markets.
The main aim is to bolster domestic currency markets and promote FX co-operation among CIS members.
To view the official announcement on Kremlin’s website, click here.