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Russian ruble’s exclusion from international financial settlements impossible — experts

August 21, 2014, 17:00 UTC+3 MOSCOW
The ruble holds quite a small share in global trade and international foreign exchange conversion transactions
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Russian ruble sign seen on a coin

Russian ruble sign seen on a coin

© ITAR-TASS/Pavel Smertin

MOSCOW, August 21./ITAR-TASS/. The Russian ruble’s exclusion from international financial settlements is impossible, experts polled by ITAR-TASS said on Thursday.

The experts commented on the proposal made European Parliament Deputy Chairman from Poland Ryshard Charneckij on Wednesday to exclude the ruble from international financial settlements and make it an unconvertible currency over Russia’s stance on developments in neighboring Ukraine.

The ruble holds quite a small share in global trade and international foreign exchange conversion transactions, member of the National Foreign Exchange Association Council Dmitry Piskulov said.

Besides, it is unrealistic to completely exclude the ruble from settlements, the expert said.

”Restrictions on freely convertible currency operations are lifted at the country level. And Russia removed actually all restrictions in 2007,” the expert said.

“I don’t think that the ruble can be excluded from use in international settlements. Besides, it is difficult to limit the ruble’s use in electronic settlement systems because these are largely commercial operators geared to demand from market participants,” Piskulov said.

The ruble accounts for 1.2% in global foreign exchange transactions and is used in international trade largely for settlements with countries of the Eurasian Economic Community, the expert said.

Estimates of the Bank for International Settlements show that the ruble’s share in international conversion transactions equaled 0.9% in 2010 and 1.6% in 2013.

Sberbank CIB chief strategist Vladimir Pantyushin said the imposition of restrictions on the ruble’s use in international settlements would be an inefficient measure.

“The painfulness of this measure would be limited for Russia because most of operations based on the use of rubles are conducted with CIS countries,” the expert said.

Russia’s parliament Speaker Sergei Naryshkin said on Thursday that the proposal by a European parliament deputy chairman to exclude the Russian ruble from the international financial system held no chances.

“This proposal holds no chances for its implementation. Such statements speak about the degree of the author’s political irresponsibility and the level of his intellect,” the Russian parliament speaker said.

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