Currency Internationalization: Analysis of World Experience and Choice of Russian Path

Abstract

The research is devoted to the key issues of currency internationalization (CI) that means much for world economic order changing and multipolar development. The purpose of the article is to determine the role of state and influence of political and economic factors on CI processes as well as work out recommendations and possible variant of reform vector for Russian Ruble development. There are five conceptual approaches to construct the combined classification of the CI stages proposed for accurate CI level definition and the detailed finalized categorization of its main factors. The article also discusses the CI standard benefits and the most common threats. The research includes investigation and comparative analysis of the three representative examples of international CI experience – namely the US, the European with about a 20-year “free CI” practice for euro and the deeply regulated Chinese model. The results reaffirm top status of the US dollar and highlevel position of euro, but attach importance to political factors in achieving it and provide insight into the RMB strategy and CI progress, thus demonstrating how developing countries change peripheral role in the world economy. The Russian monetary and financial policy of 1990–2019 is specified as the “cold” one with weak status of the Ruble, but we reveal and assess some recent steps on CI activation such as bilateral stimulation of settlements in national currencies, creation of alternative systems, the digital Ruble project analysis, the decision on payments for gas in Rubles, etc. These measures can be considered as forced CI and the starting point of its vector. According to main findings we also propose the mechanisms for further Russian CI strategy creation.