Eurasian Customs Union

[londontsi]

Re: Eurasian Customs Union

.... Should a common currency be established in the EEUnow, it will gain in value as oil prices start to rebound. ......

You are absolutely correct.
In another words the common currency will be a petro-currency.

Why on earth should Armenia suffer the gyrations of a petro-currency when it does not earn a penny from gas or oil.
Armenia earns its living from Tourism, agricultural products and a growing technology sector etc.

Wouldn’t it be more appropriate to have a currency value that promotes those industries and ultimately its economy.
.

[Eddo211]

Re: Eurasian Customs Union

Armenians have always been good in trade business.....Armenia not be connected to petro-currency as a requirement to join EEU

[Haykakan]

Re: Eurasian Customs Union

You are absolutely correct.
In another words the common currency will be a petro-currency.

Why on earth should Armenia suffer the gyrations of a petro-currency when it does not earn a penny from gas or oil.
Armenia earns its living from Tourism, agricultural products and a growing technology sector etc.

Wouldn’t it be more appropriate to have a currency value that promotes those industries and ultimately its economy.
.

Armenia's currency is insignificant as is its economy. A currency based on a much larger economy brings big advantages such as wider acceptance of it and generally more stability. The good thing about basing it on petros is that those resources will be regaining value and so will any currency based on them. A stronger currency has advantages and disadvantages. The stronger your currency is compared to others the more expencive your goods are to others. This hurts exports and helps imports. A weak currency helps exports and hurts imports. Armenia does plenty of both exporting and importing and the ratio of imports to exports will tell you part of the story as to the benefits and costs of a single currency. Another important factor is that since Russia is Armenias biggest trade partner, it helps to have the same currency to avoid losses and costs associated with currency fluctuations. You should keep in mind that at present Russia is under sanctions and a victim of currency manipulation, plus oil and gas prices are artificially low. None of these things are sustainable thus there is big positive potential in being tied to Russia's economy now for it is destined to grow as these factors change. Economics is a pretty interesting subject and as far as currencies go, both a stronger and a weaker currency produces winners and losers. Weak currency is good for exports and bad for imports. Strong currency is bad for exports and good for imports.

[Haykakan]

Re: Eurasian Customs Union

Here is a overview of the Armenian economy.

http://www.tradingeconomics.com/armenia/imports

As you can see she imports more then exporting. A stronger currency will help its citizens buy more stuff. This is good for a economy based on imports for the imported goods become cheaper as currency gains strength. This will however hurt exports but as you can see imports dominate her economy and this means the Armenian people will be able to buy more with their stronger currency. Much of her economy is based on remittances from Russia and here again common currency will be a big benefit as there will not be any value lost on transactions and no currency risk to worry about when dealing with the biggest partner.

[Federate]

Re: Eurasian Customs Union

Only $5 million but I guess it's a start. If only our exports to Kazakhstan have the same growth rate.

Export from Kazakhstan to Armenia grows 16 times
17:58, 12.06.2015
Region:World News, Armenia
Theme: Economics

The export of goods between Armenia and Kazakhstan has grown 16 times reaching $5 million, said KAZNEX INVEST national agency on exports and investments summing up the first trade mission of Kazakhstan to Armenia.

As a result of the trip, contracts for the supply of Kazakh plywood, medical devices, pharmaceuticals, paints, ammonium nitrate and insulation products worth $5 million were signed , Kapital.kz reported.

Deputy Chairman of KAZNEX INVEST Meyrzhan Maykenov said it was the first visit of Kazakh business to Armenia taking into account new opportunities after Armenia's joining Eurasian Union.

http://news.am/eng/news/271547.html

[Eddo211]

Re: Eurasian Customs Union

Increase trade with Iran.

[Armynia]

Re: Eurasian Customs Union

Actually increasing trade with Iran and Asian countries will be a very good start toward strong economy.

[londontsi]

Re: Eurasian Customs Union

Increase trade with Iran.

Actually increasing trade with Iran and Asian countries will be a very good start toward strong economy.

Great ideas !!!

Trade happens with staff one produces.

Any ideas what we can sell to these countries?

[Tsov]

Re: Eurasian Customs Union

Great ideas !!!

Trade happens with staff one produces.

Any ideas what we can sell to these countries?

Tabaco, to Iran maybe sheep and electricity.

[Eddo211]

Re: Eurasian Customs Union

Iran likes to invest in Armenia. The rail road is one thing that is important......would you beleive Armenian scientists working on Iran's Nuclear program? no proof but its true. For now maybe we can increase the electricity production from the gas we get from Iran and help Iran with its complicated electrical grid.

We could export computer equipments and anything Iran can't get do to remaining sanctions, etc