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Sunday, March 18, 2018

The Central Bank has been suspected of the preparation of a denomination after a design contest bills

At the end of 2017, the Central Bank will issue banknotes in denomination of 200 and 2000 rubles. The symbol of the new banknotes will choose the population. For this, the Central Bank since June 28, has launched a website to vote – the Russians can offer options that will decorate banknotes. As says the head of the Central Bank Elvira Nabiullina, the release of new bills — “that’s no additional issue”. Really?

photo: Gennady Cherkasov

The first stage of the competition will be held from 28 June to 28 July. During this time, citizens will be able to offer the option symbol, which can be placed on the new banknotes. Then they will choose only those that scored more than 5 thousand votes.

In the second stage (from 1 August to 30 August) will conduct a nationwide survey. According to its results will be the top 10 most popular options.

And only after that, from 5 September to 5 October, the site will host a final vote. The results of the Central Bank will announce on 7 October live on TV.

As explained in the Bank, new notes are introduced to simplify the calculations of citizens for goods and services. Thus, as stated by the head of the regulator Elvira Nabiullina, the Central Bank is not considering in the near future the possibility of denomination of the Russian currency. Meanwhile, the Internet citizens, discussing the news, Express concern on this subject. We discussed it with the experts.

According to the chief economist of the Institute of stock market and management Mikhail Belyaev, on this measure, the Central Bank will not be solved because of its high cost. In addition, the denomination only go with a low inflation rate and confidence that it will not be dispersed. We have the same it is still at a high level. The Bank intends to reduce this figure by the end of 2017 to 4%.

In achieving this goal, the issue of new banknotes is not a hindrance. It is not additional emissions, and rising prices should not be afraid. “The Central Bank has some regulations for annual printing of banknotes, as part of the currency withdrawn from use in connection with wear and so on. In the case of bills of 200 and 2 thousand rubles will be the same – says “MK” senior analytical MFX Broker columnist Robert Novak. – The plan was to print a certain number of banknotes 100 rubles — will print in half. But there will be notes on 200 roubles. About any risks for the economy and inflation speech in this case does not go and can not go, because the money supply is not increasing”.

Another important point is the ratio of cash (physical bills) and volume of the money supply. “Now in circulation are about 8 trillion cuts. Thus, the money supply, which incorporate the money in the accounts, in electronic form, and so forth, is more than 35 trillion rubles, – Said financial analyst of “Finam” Timur Nigmatullin. – In fact, cash is, of course, important but not the main element of the money supply. Therefore, even if the Central Bank will print banknotes a little more than expected, monetary inflation is not affected”.

As explained by the expert, the level of inflation is determined not by the quantity of cash notes, and the monetary policy of the Central Bank. We are talking primarily about the size of the key rate.

Another thing is that, by continuing to print currency, we do not go into clearing.

Currently ATM we have much more than a terminal for paying by credit card. In Europe, the opposite is true — even the markets and small shops will not miss a customer who does not have in his pocket a paper euros. As a result, in France the share of cash payments — 60%, we have about 90%. World leader is Sweden, where the clearing is, 97% of payments and cash just allowed “under the knife”, they actually do not need.

As experts explain, the development of electronic payments in Russia is hampered by poor infrastructure and people’s mentality. According to the National Agency for financial studies, one in five adult Russians do not use banking services. The majority of the citizens continue to simply withdraw all money on payday or pension. Because they are used to pay cash, don’t trust the banks and bad control card costs.

As experts predict, to teach people to use “plastic”, will take decades.

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