De-dollarization Process in the EAEU Member States as an Element of the Monetary Policy

Abstract

Economic integration in the EEU region naturally captures the area of cooperation in the monetary sphere, which is a more high-level stage of integration in its classical understanding. The imbalances in macroeconomic development and a number of problems in the monetary systems of the EEU member-countries are an obstacle to the intensification of cooperation in the monetary sphere. One of the significant problems, common to all the EEU member-states is the dollarization of their economies, which imposes restrictions on the ability of monetary bodies to regulate macroeconomic processes in the country. Replacing national currencies in settlements, payments and savings with «hard currencies» reduces the efficiency of transmission channels, worsens volatility indicators of national currencies and strengthens the spiral of formation of negative expectations regarding inflation levels. An increase in the debt load denominated in foreign currency, in particular for individuals, creates additional risks to the monetary systems of countries. This article is devoted to the study of the problems of dollarization of the economies of the EEU member-states, of the required de-dollarization measures, as well as to the analysis of the prospects for the de-dollarization process spreading at the regional grouping level.