The Contradictions of Currency Integration in the EEU

The growth of monetary and financial cooperation will be required to encourage the expansion of trade relations and continued liberalization between EEU member states. The strengthening of national currencies and exchange rates of member states, the development of currency systems, and the coordination of monetary policy will contribute to the deepening of integration processes between member states. Economic integration and the liberalization unfolding within its framework contribute to the internationalization of the currency of a relatively strong country in economic and political terms, as a result of deepening cooperation between countries, as well as increasing transactions of a commercial and financial nature. The paper highlights that such factors, as high currency risks, national currency instability, limited convertibility, different exchange rate dynamics and regimes among member nations and a lack of financial market development make it difficult to increase the share of national currencies in mutual settlements in addition to the low proportion of national currency transactions. Meanwhile, further economic integration is facilitated by the depth and liquidity of financial market development, financial stability measures that prevent exchange rate fluctuations, and international expansion strategies of national financial institutions. The research objective is to evaluate the inconsistencies currently present in the EEU countries' monetary and financial cooperation and to suggest ways to move forward with successful collaboration. The research shows that the depth of financial market development, handling currency rate fluctuations and the global expansion goals of national financial institutions contribute to tighter economic integration.