Current Possibilities of Bank Settlements in National Currencies of Russia’s Partner Countries in International Economic Associations

Abstract

The article examines the issue of the development of international settlements in the national currencies of Russia’s partner countries in international integra­ tion associations—the Eurasian Economic Union, the Shanghai Cooperation Organization, and the BRICS economic bloc. The relevance of the study is due to the needs of economic integration and the expansion of the practice of economic sanctions in relations between states, as well as crisis phenomena in the global financial system. A survey of representatives of 19 largest Russian banks serves as the empirical base of the study. The survey has been conducted using a hybrid methodology with formalized and non­formalized elements. The questionnaire contained questions about the possibilities of opening accounts in the currencies of partner countries, conducting settlement transactions in them, using various systems for transmitting financial messages for settlement transactions, and the prospects for the development of settlements in national currencies. The study allows us to conclude that the transition to settlements in national currencies in it­ self cannot solve the problem of minimizing the negative consequences of external restrictive measures. In addition to the economic characteristics of national cur­ rencies well known from published works, such as volatility, underdevelopment of the foreign exchange market, limited lending opportunities etc., regulatory costs are a significant obstacle to the development of settlements in them. Some of the main directions for the development of settlements in national currencies may be a significant simplification of the norms and procedures of currency control in mutual settlements with partner countries in national currencies as well as har­ monization of the relevant regulatory environment within the framework of in­ tegration associations, primarily the EAEU. In the sphere of financial messaging services, one should not strive to ensure that the financial messaging system of the Bank of Russia (SPFS) becomes commercially efficient and gains as much market share as possible. It should be developed primarily as a backup system, and the main attention should be paid to ensuring the ease of transition to it in case of the Russian Federation’s disconnection from the SWIFT system as well as to compat­ ibility with similar systems operating in the EAEU countries.