29 May 2012 | 17:13

Common CES currency will be possible in 5 years

Mikhail Khazin. Photo by Danial Okassov©

Common CES currency will be possible in 5 years, Tengrinews.kz reports citing Russian analyst Mikhail Khazin. “I think that this (creation of the common currency) will be done almost automatically. We will need a common currency in the course of development of our relations, but this has to be natural. Europe set a goal and we see the result of it. I think the common currency will be required in about 3-5 years, when we realize that maintaining multiple currencies costs us more than switching to a common currency,” Khazin said. According to him, the current situation in the global economy will sooner or later come to realize the necessity of creating of an alternative to the current global currencies. “There is a need to switch to our own currency. We need to understand that small country will not be able to maintain its currency because the cost of it will be too high. This is the problem that Greece is facing today. Greece has been maintaining its economy for many decades by devaluing its drachma. Same as Italy and Spain. Euro is there today and drachma is no longer. They cannot devalue Euro and cannot go back to drachma,” the expert said. He noted that the target of the member countries was to bring the future Eurasian Union to 500 million people by 2015. “But if we do it today, the current geopolitical situation will hinder us, i.e. both Europe and the U.S. will yell at us. But as we situation deteriorates in the world, there will be less of those who hinder us. They will not care about us anymore,” the analyst said. He added that there are only two countries that can make such a technological zone at their base: China and India. But they have their own specific problems, e.g. China has a problem with organization of the internal demand, as it is oriented at the U.S. market. He also noted that it is quite possible that countries like Turkey, Syria, Iran or even India will enter the Common Economic Space as it develops and transforms into the Eurasian Union. “And we have a lot of prospects in this area, but this is only a tendency. How will it be implemented? As I understand, Putin stands for the maximum development of the Customs Union,” Khazin said. By Aidana Ussupova

Common CES currency will be possible in 5 years, Tengrinews.kz reports citing Russian analyst Mikhail Khazin. “I think that this (creation of the common currency) will be done almost automatically. We will need a common currency in the course of development of our relations, but this has to be natural. Europe set a goal and we see the result of it. I think the common currency will be required in about 3-5 years, when we realize that maintaining multiple currencies costs us more than switching to a common currency,” Khazin said. According to him, the current situation in the global economy will sooner or later come to realize the necessity of creating of an alternative to the current global currencies. “There is a need to switch to our own currency. We need to understand that small country will not be able to maintain its currency because the cost of it will be too high. This is the problem that Greece is facing today. Greece has been maintaining its economy for many decades by devaluing its drachma. Same as Italy and Spain. Euro is there today and drachma is no longer. They cannot devalue Euro and cannot go back to drachma,” the expert said. He noted that the target of the member countries was to bring the future Eurasian Union to 500 million people by 2015. “But if we do it today, the current geopolitical situation will hinder us, i.e. both Europe and the U.S. will yell at us. But as we situation deteriorates in the world, there will be less of those who hinder us. They will not care about us anymore,” the analyst said. He added that there are only two countries that can make such a technological zone at their base: China and India. But they have their own specific problems, e.g. China has a problem with organization of the internal demand, as it is oriented at the U.S. market. He also noted that it is quite possible that countries like Turkey, Syria, Iran or even India will enter the Common Economic Space as it develops and transforms into the Eurasian Union. “And we have a lot of prospects in this area, but this is only a tendency. How will it be implemented? As I understand, Putin stands for the maximum development of the Customs Union,” Khazin said. By Aidana Ussupova

news Kazakhstan Kazakh economy currency Common Economic Space