The share of settlements in national currencies between the EAEU countries reached 74% the experts said on the session dedicated to the efficiency of export within the SPIEF 2021.
“The share of settlements in rubles is about 70%. The same is 20.7% for the dollar and 7.3% for the euro. Settlements within the EAEU are also made in the Kazakhstan tenge. Their share increased in recent years, especially when it comes to transactions between Kazakhstan and Kyrgyzstan. According to the Eurasian Bank for Reconstruction and Development, currently, about 74% of settlements within the EAEU countries are made in national currencies,” Azer Talibov, Chairman of the Board of EXIMBANK of Russia JSC, moderator of the export session.
In his opinion, these trends are still far from becoming global, but there is a positive trend. According to the Bank of Russia, from 2018 to 2020, the share of settlements in dollars in Russian export transactions decreased from 67% to 56%; in euros increased from 17% to 27%; in rubles increased from 13.6% to 14.7%.
Multicurrency settlements in international trade were the leitmotif of the export session at the SPIEF. The participants in the discussion agreed that “settlements in national currencies are a matter of economic security, sovereignty, and freedom.”
“In general, globally, there is a slight decline in the share of dollar settlements over the past years. For example, from 2000 to 2020 the share of the dollar in the international reserves of the world’s national banks fell from 72% to 61%. Although in the COVID 2020-2021 years, this process has slowed down somewhat, we expect that this trend will continue as the world economy recovers following quarantine,” Azer Talibov.
During the session, particular attention was paid to the strengthening of the ruble. “Trading in national currencies using the ruble adds stability. The ruble is attractive and stable today, it can become the instrument that companies can rely on to minimize their risks when entering foreign markets,” Azer Talibov, Chairman of the Board of EXIMBANK of Russia JSC. Exchange rate volatility can lead to loss of profits for the exporter, and mutual settlements in the currency of the traded goods ensure risk reduction and clear and transparent profits.
“We strive to economically stimulate the use of the Russian ruble in settlements, for example, by providing attractive financing terms in rubles, sharing with exporters the experience gained over the years in the field of settlements with individual countries and regions, taking risks associated with those countries and counterparties that are difficult to cover with insurance in commercial banks,” Azer Talibov said, speaking about the REC Group’s initiatives on financing non-resource exports. “EXIMBANK of Russia JSC offers to finance a bank of a foreign buyer. Within this product, we provide a loan in rubles to a foreign bank serving a buyer of Russian export products. The advantage of such an operation is that the debt burden lies not with the Russian exporter, but with the foreign bank, which can finance its client-buyer in local currency. The Russian exporter receives proceeds in rubles, a foreign is liable to EXIMBANK of Russia JSC in rubles, and the currency risk associated with the ruble can be hedged on the international market by the borrowing bank or with a bilateral deal between the lending bank and the borrowing bank,” Azer Talibov.
Besides, settlements in national currencies often increase the speed of deals, which is also a competitive advantage.