Russian President Vladimir Putin has moved one step closer to creating an integrated currency market in the Commonwealth of Independent States (CIS), which is a regional organization whose participating countries are former Soviet Republics, formed after the breakup of the Soviet Union.
On Friday, Putin submitted a draft law, named “On Ratification of the Agreement on Cooperation in Organizing an Integrated Currency Market in the Commonwealth of Independent States” to the lower chamber of the Russian Parliament, the State Duma.
The bill submitted by Putin aims to put into effect parts of the Plan for Implementing CIS Joint Measures to Overcome the Consequences of the Global Financial and Economic Crisis for 2009–2010. The bill comes several years after an agreement for cooperation in organizing an integrated currency market in the CIS was signed on December 5, 2012.
The agreement envisages that resident banks of the participants are given direct access to each other’s domestic currency markets to conduct interbank foreign exchange currency transactions on terms that are more favorable than those that are offered to domestic commercial banks. This would help expand the use of national currencies in foreign trade payments and financial services and thus create preconditions for greater liquidity in domestic currency markets.
The aim is to strengthen domestic currency markets, along with foreign exchange currency cooperation among CIS members.
The draft law is in line with the provisions of the Treaty on the Eurasian Economic Union and other international agreements signed by the Russian Federation.
Read more about this from the official announcement posted on the Kremlin’s website.