Currency union in EEU impossible without "four freedoms" - Bank of Belarus

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In order to create a currency union and introduce a single currency in the Eurasian Economic Union (EEU), it`s necessary to secure a free flow of goods, services, capital and labor power, and to take into account the domestic economic needs, said the National Bank of the Republic of Belarus to RIA Novosti.

Russian President Vladimir Putin instructed that until September 1, the Central Bank of Russia and the government should consider the issue of currency integration in the EEU and the possibility to create a currency union in the future. During the meeting between the leaders of Russia, Belarus and Kazakhstan on March 20, Putin said that it was time to talk about creating the currency union between the three countries.

"For the EEU to be fully operational, the member states should implement a set of measures to create equal conditions for doing business ... and secure a free flow of goods, services, capital and labor power... Only after the single market based on "the four freedoms" is formed, the currency union can be founded, and the single currency can be introduced," says the document signed by the Deputy Chairman of the National Bank Sergey Kalechits.

The introduction of the single currency, as emphasized in the statement of the National Bank, should also be caused by the internal economic needs of the states.

"If the EEU member states come up with the relevant initiatives, the National Bank, on its part, will be ready to discuss the possible prospects and mechanisms of the currency union with the central banks and ministries of the economic block," it was noted.

President of Belarus Alexander Lukashenko has repeatedly stated that there are exceptions and limitations in various areas of business and trade within the EEU. In particular, Minsk said that it was important to form common energy, gas, oil and petroleum products, and transportation services markets.

Text and pictures by IA Novosti-Kazakhstan