Kazakhstan Rejects Moscow's Single Currency Proposal

[Bosonic]

Source: RFERL

A senior Kazakh official says the Central Asian nation will not accept a single currency in a trade bloc championed by Moscow.

Deputy Economy Minister Timur Zhaqsylyqov told reporters in Astana on April 22 that "Kazakhstan has a clear and consistent position on excluding the possibility of introducing a single currency within the framework of the Eurasian Economic Union (EES)."

It was Kazakhstan's first public rejection of Russian President Vladimir Putin's proposal last month to create a common currency between the four countries in the bloc, which includes Armenia, Belarus, Kazakhstan, and Russia.

Economic strains have been growing between Kazakhstan and Russia. Since March, Kazakhstan has restricted sales of Russian food products, citing consumer safety concerns.

Read more: http://www.rferl.org/content/kazakhstan-rejects-moscvows-single-currency-proposal/26972232.html

[DetlefK]

1. Why doesn't Kazakhstan want its currency controlled by Russia?

Are they worried about Russia dictating kazakh interior policies?

Are they worried about Russia being as dominant for the new currency as Germany is for the Euro?

Has Kazakhstan heeded the EU's lesson that a monetary union without a fiscal union doesn't work?

[renegade000]

3. All of the above most likely

Of course the more interesting question is why Russia wants to control Kazakhstan's currency.

"Well the Ukraine thing turned out to be a giant shit-show, let's try something else!"

[jakeXT]

7. With Blair advising it's the UK position

http://www.telegraph.co.uk/news/politics/tony-blair/11052965/Tony-Blair-gives-Kazakhstans-autocratic-president-tips-on-how-to-defend-a-massacre.html

[okaawhatever]

2. Good plan. nt

[Xithras]

4. The Kazakhs walk a fine line.

On one hand, they are a fully independent nation for the first time in centuries, and they are eager to maintain that autonomy and independence. They don't ever want to be a Russian vassal, or worse...a part of a new Russian Empire...again.

On the other hand, due to their geographical location, the realities of the transportation infrastructure in their nations, and global geopolitical problems, Kazakh trade is almost completely dependent on Russia. They realize that Russia can devastate their economy simply by closing the Russian borders, so they do their best to remain friendly with Russia.

Add in the fact that ethnic Russians make up a quarter of the Kazakh population, and you end up with a nation that is solidly within the Russian "sphere" while trying to maintain an identity that is still independent from Russia.

Rejecting Putin's currency proposal is a bold move, but an understandable one.

[Adrahil]

5. I sense some ethnic Russians Kazakhstan will soon need Moscow's help....

Ya know... for humanitarian reasons.

[brooklynite]

6. FREEDOM LOVING ethnic Russians...

...with a desire for rubles

[Little Tich]

8. I don’t think the Ruble is a very good currency to embrace right now,

and I seriously doubt that Russia wants to help out.

The real reason is a much more sinister one: Russia wants to grow. Russia is hungry.

[CatholicEdHead]

9. Will Pootie Poot allow this to stand?

It may be brought up again and "pass".