RUSSIAN BANKER RECOMMENDS DROPPING TWO SMALLEST COINS

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V12 2009 INDEX E-SYLUM ARCHIVE

The E-Sylum: Volume 12, Number 1, January 4, 2009, Article 22

Dick Johnson emailed this submission last week, but somehow it got lost and didn't make it in to last week's issue. Sorry! Here it is. -Editor

In a long year-end interview published December 27, 2008, the head of the Russian Central Bank, Aleksey Ulyukaev, commented on a number of money subjects. Included in this were his statements on Russia's low denomination coins, particularly the 5- and 10-kopek coins. Like low-value coins in other countries it is costing Russia more to manufacture these coins than their face value.

Question: Why does the Central Bank produce the [low value] coins? Many shops in Russia no longer take Russian pennies – the 10 kopek coins and lower. Why do you produce that many [when] the people don't even care to pick up from the sidewalk? Are they worth the production cost?

Answer: Because we have to. We produce them because we have to in accordance with the legislation. We understand the point and our position is to abolish the smallest coins – at least 5 kopeks or 10 kopeks and smaller. But it's up to the Parliament to adopt this or that decision, and of course we will fulfill it if they do.

To read the lengthy interview click on the URL below (the coin questions are near the end): Russian Central Bank's policy (www.russiatoday.com/spotlight/release/1845/)

Wayne Homren, Editor

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