First Vice PM refutes possibilities of a single currency within the Customs Union

First Vice PM of Kazakhstan Bakytzhan Sagintayev refutes the possibility of a single currency within the Customs Union of Kazakhstan, Russia and Belarus, Tengrinews.kz reports.

“I have no idea what these speculations are based on (…) the issue of a single currency hasn’t been broached in negotiations (…) and the draft agreement [on launching the Single Economic Space to replace the Customs Union] has no clauses covering a single currency. Kazakhstan retains its national currency, the tenge”, the Vice PM assured journalists April 8.

Earlier, Gregory Marchenko, ex Governor of the Central Bank, had been talking of possibilities of a single currency to be launched. However, according to him, the process might take at least a decade.

“It took Europe about five decades (…) it could take us a decade if we build on the Eurozone experience. So far no concrete moves have been made towards introducing a single currency”, Mr. Marchenko said in an interview for primeminister.kz late May 2013.

According to him, “to run a single currency, the Customs Union member states should work out single macroeconomic parameters similar to those in place within the EU”.

“Macroeconomic parameters similar to those set by the Treaty of Maastricht haven’t been set yet. The first step is to agree on such parameters (…) then the member states will have to stick to them for at least 5 years (…) only then could a supranational bank be launched to issue a supranational currency”, he elaborated.