CIS bankers looking for economic integration solutions at Chisinau conference

Stronger cooperation between banks in the Commonwealth of Independent States (CIS) has been a frequent item on the CIS agenda, but discussions are seldom followed by concrete actions, said Marin Molosag, vice governor of the Moldovan National Bank, commenting on the works of the two-day CIS bankers' conference in Chisinau, which was centered on giving national currencies a greater role in foreign trade. Molosag said banks from different countries should cooperate in servicing companies. “There are various barriers in the way of this collaboration: different laws, different levels of liberalization of the currency market, issues concerning the use of a particular national currency in international transactions, etc. In his context, Moldova appears to be quite advanced. We had approved Article 8 of the IMF's Articles of Agreement as far back as in 1995, and we have no restrictions on the use of the national currency, while having quite a liberal atmosphere in the banking sector. If we look at the proportions of the currencies used in the international transactions within the CIS, transactions in (US) dollars come first, followed by euros, while the Russian rubles represent no more than 5 percent. This means national banking authorities should not only adopt policies and regulations, but also promote trust in domestic currencies”, said Molosag. Marin Molosag added that companies decide for themselves what currency to choose for their transactions. The central banks and other national authorities need to take measures to minimize their risks. “At such conferences we discuss how we can do it better”, he stated. In her opening speech at the conference, Prime Minister Zinaida Greceanyi highlighted the need to optimize cooperation in servicing financial operations within the CIS, a particularly sensitive issue during the global recession. In her opinion, a greater role of national currencies in the trade among the CIS countries may enhance integration processes in the banking sectors, and consequently, the integration of our countries' economic systems. The conference brought together 140 delegates from 8 CIS countries.