Rus News Journal


Cheap reform

Cheap reform

has not passed also month from the date of Sergey Dubinin`s next statement for inopportuneness of conversations for denomination as Boris Yeltsin has signed the decree about currency reform carrying out. Since January, 1st, 1998 in Russia it will be made 1000 - multiple denomination of denominations. On economic validity of the similar decision will argue still (p. 2 see also), but from the political point of view the presidential decree has appeared very opportunely.

How to change
About details of forthcoming currency reform to journalists has told on a press - conferences the head of Bank of Russia Sergey Dubinin. Understanding fear of Russians before any similar actions, he has explained at once that the exchange of money in sense habitual for Russia will not be. Old denominations and coins gradually will be withdrawn by the Central bank from circulation. A great bulk of old money of the Central Bank plans to deduce from the reference for the first 4 - 5 months 1998.
All 1998 old and new money will go on equal terms. For convenience of buyers cost of the goods and products in shops will be specified simultaneously in old and in the new prices. And, most likely, it will practise since November, 1st, 1997 that people were prepared in advance for reform.
since January, 1st money addressing nowadays in Russia will replace on new in the ratio: 1000 old roubles for 1 new. From the same day the Bank of Russia will enter into the reference new banknotes by face value 5, 10, 50, 100, 500 roubles, metal coins 1, 5, 10, 50 copecks and coins advantage 1, 2, 5 roubles. Simultaneously in 1000 times the sums of all rouble contributions will decrease.
new money will be visually very similar on old, differing only smaller quantity of zero and new degrees of protection. In the Central bank such design explain care of the population which differently can is perfect get confused in denominations.
since July, 1st, 1998 it will be forbidden to commercial banks to give out physical and to legal bodies money of the old sample. The old money which has remained by January, 1st, 1999 can be exchanged in Savings Bank branches on December, 31st, 2002 inclusive.
Sergey Dubinin also has informed that in the Central Bank will work hot phone on which all interested persons can receive particulars of forthcoming denomination ((095) 924 - 44 - 09, 921 - 68 - 62).

What for to change
Currency reform is unique - for the first time about it have warned for five months. It removes impression of impreparation which could arise. Really, has not passed also half a year from introduction in the reference of a new denomination of the maximum face value - 500 thousand roubles. Under data the Businessman - Daily the Central bank did not conduct any serious consultations on a theme of denomination neither with the Ministry of Finance, nor from Federal Commission on Securities which this project mentions directly. Has Not been advised of reform and IMF (Dubinin was going to contact it only after yesterday`s a press - conferences). Knew Nothing parliament. Has not passed also month about a press - Dubinin`s conferences on which that has rejected assumptions of journalists of denomination preparation.
it it is possible to explain all privacy reasons. Actually the legislator of a monetary policy in Russia not the government, and the Central bank which secretly also took out this idea. Now there is time to co-ordinate reform details.
and nevertheless in the yesterday`s statement it is possible to look and implied sense. Dubinin`s positions all were more strongly loosened during proceeding bank scandal, and to it the loud news, capable to change the relation of the press and parliament to the chairman of the Central Bank urgently was required.
denomination for this role approached as well as possible - since yesterday focus of public interest has obviously moved from bank scandals to destiny of national currency. And announcements of currency reform can be considered also as Sergey Dubinin`s political course.