Comments on: BRICs To Establish New Multi-Currency Financial Order /2015/05/25/brics-to-establish-new-multi-currency-financial-order/ Dedicated to EM Investing Fri, 11 Mar 2016 05:00:24 +0000 hourly 1 http://wordpress.com/ By: В.Д. Ильин /2015/05/25/brics-to-establish-new-multi-currency-financial-order/comment-page-1/#comment-9811 Sat, 30 May 2015 17:05:22 +0000 /?p=8642#comment-9811 Multicurrency market and e-trade technology of normalized economic mechanism (NEM) [1].

To buy or sell a certain type of commodity any member of multicurrency market may choose a partner from any country with which there is a trade agreement. The choice can be made on e-trade portals where buyers and sellers place their offers. Price of any commodity may be presented in multiple currencies (of the allowed for this type of commodities).
Sales tax (in currency that was used in trade deal) goes to the country that issued the license to sell the commodity [1, 3].

Realization of the idea of multicurrency market would reduce the harmful effects of the economic crisis. Krugman made a similar conclusion when he wrote about the plight of some EU countries [2].

Market prices are set in deals on twenty-four-hour operating e-trade portals. The beginning of a purchase and sale transaction is the signing of a typical contract (for this type of commodity).
Banks-providers of the buyer and seller register the fact of signing the contract (the contract is kept in these banks together with the payment document). The seller does not have any rights to increase the price for this commodity after the moment of the signing (even if there are people who want to buy it at a higher price). The commodity itself does not matter. One of the necessary components of e-trade technology is the legal backing of purchase and sale transactions.

Domestic e-trade is done according to the rules that are set by the laws of the state under whose jurisdiction the NEM-system operates. E-trade deals among economic agents from different NEM-systems should be done following the given obligatory rules:
– the applicable set of currencies is represented by an intersection of the sets of currencies that are activated by central banks of the NEM-systems whose economic agents execute the deal;
– restrictions should be made corresponding to the list of commodities that are allowed for import and export, as defined by law and by international treaties.
Coordinating relations between countries are necessary while developing and implementing of the above rules. Any global regulators that are limiting the freedom of economic choice are not desirable.

References
1. Ilyin, A.V., Ilyin, V.D. Towards a Normalized Economic Mechanism Based on E-services. Agris on-line Papers in Economics and Informatics. 2014, 6, No. 3, p. 39–49. [Online] Available from: http://online.agris.cz/files/2014/agris_on-line_2014_3_ilyin_ilyin.pdf [Accessed: 30 May, 2015].
2. Krugman, P. What Ails Europe? The New York Times. 2012. [Online] Available from: http://www.nytimes.com/2012/02/27/opinion/krugman-what-ails-europe.html?_r=0 [Accessed: 30 May, 2015].
3. Ilyin, A.V., Ilyin, V.D. Trading with direct lending. Research.Gate.net. 2014. DOI: 10.14357/08696527140415 .

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