THE EXPERT PROPOSED REDENOMINATION OF RUBLE

Alexander Razuvaev, the head of the Alpari Information and Analytical Center, came up with an unexpected initiative. He stated that the Russian currency required a 100-fold redenomination.

Thus, kopecks will return to circulation, which should increase confidence in the Russian currency. According to Vedomosti newspaper, this measure is also necessary because of the increase in cash - Russians more often take the money from the banks now. If we consider the data of the Central Bank at the beginning of July, then 11.6 trillion rubles went into cash circulation in the country. It means that there are 80,000 rubles in cash for every Russian citizen, including infants and prisoners.

Razuvaev notes that not only individuals, but also the representatives of business are emptying their bank accounts, which, in his opinion, contributes to the business’ turning into gray schemes.   

The increase in cash is also facilitated by the issue of illegal salaries.

The expert believes that in this situation, redenomination will become a logical solution, considering the fact that it will not cost the Central Bank much- the price of one new banknote ranges from 60 kopecks to 2 rubles. The Central Bank itself has not commented on the proposal yet.