Goal of SES is stable economic development of its member states, Belarus Chief Banker

Chairman of the National Bank of the Republic of Belarus Piotr Prokopovich kindly agreed to give an interview to our Agency concerning the Customs Union between Kazakhstan, Belarus and Russia and establishment of the Single Economic Space.

Mr. Prokopovich, do you think it is possible to introduce single currency for the Customs Union states taking into account the experience gained by us in overcoming the consequences of the global financial crisis?

Development of integration processes without deteriorating the conditions of the national markets' functioning was one of prior issues for the CU and other CIS countries while they were combating the global financial crisis. As is known, the goal of formation of the Customs Union is establishment of a common customs territory within which no customs duties and economic restrictions are applied except for special protective, anti-dumping and countervailing measures. A common customs tariff and other common measures of trade regulation with the third countries are used within the Customs Union.

In order to move to a higher level of integration and establish the Single Economic Space the CU states should create equal conditions for economic activity and free movement of goods, services, capital and labor forces within this economic space.

The Single Economic Space participating states should move towards introduction of a common currency. However, it is too early to use the common currency within the Customs Union functioning now and the Single Economic Space that is being formed. As a rule, introduction of the single currency is a final stage of the process of several countries' integration after the establishment of free trade zones, the customs union and the single economic space. Transition to a monetary union is possible in case of full harmonization of macroeconomic policy and achievement of convergence of macro-economic indicators.

What do you think about G. Marchenko's proposal on development of a mechanism of coordinated policy of central partner banks of SES regarding change in the exchange rate or non-recurrent depreciation of currencies?

SES member states agreed that should be held consultations in order to draft and harmonize exchange rate policy arrangements under the Agreement on agreed principles of the currency policy. The same time, exchange rate policy of each SES member state may be coordinated to the extent that meets the current macroeconomic needs of the country. Currently we work on extending the use of national currencies for mutual payments and create the integrated currency market. Besides, the parties should take measures to maintain national currencies stability, first of all, through macroeconomic stability, approximation of domestic laws and other measures envisaged by the said Agreement.

What will the Single Economic Space bring round?

The SEC is purposed to create conditions to make the common markets of goods and services, capital and labor work for the steady and efficient economic development of its member states. Advance of integration processes intra-SES will contribute to deepening of trading and investment relations, strengthening of competitive ability of the national economies at the foreign markets, and formation of a single labor market with removal of limitations on population move across the borders of the SES member states which will let regulate then the unemployment level.

As a result all the efforts we make will promote steady development of our countries and raise living standards of our people.

Thank you for the interview!