Monetary Policy of EAEU Member States: Current Status and Coordination Prospects

Joint Report by the Eurasian Economic Commission and the Eurasian Development Bank.

The Treaty on the Eurasian Economic Union stipulates the need to deepen economic integration, inter alia, through implementation of coordinated macroeconomic and foreign exchange policies. The main purpose of this research is to analyze the current status of monetary policies in EAEU member states. The research also seeks to provide answers to the following questions: How efficient are the current exchange rate and the monetary regimes, and do they permit attainment of the stated objectives? How efficient are the channels used by regulators to influence the economy? What obstacles hinder the efficient coordination of monetary policy within the framework of the integration association? What could be the common aims and objectives for the central (national) banks? The report uses the following classification of forms of financial and monetary cooperation: regional payment agreements; regional financial-cooperation funds; regional development cooperation; initiatives designed to enhance certain elements of the common financial market or its segments; and exchange rate mechanisms and currency unions. A review of international best practices in the area of monetary policy coordination by developing countries has shown that the forms listed above help reduce exchange rate volatility and stimulate international trade.