The Ambassador of Nepal to Russia proposed to create a mechanism for settlements in national currencies

Russia and Nepal could start making mutual settlements in national currencies, for this it is possible to create a mechanism that involves cooperation between the Central Banks of the two countries, Nepal’s Ambassador to the Russian Federation Milan Raj Tuladhar told RIA Novosti.

“We can create a mechanism similar to the one the Indians created with the rupee and the ruble. It will be a barter based on our own currencies, with no other targets involved. It should be banking cooperation between the central banks of Nepal and Russia,” Tuladhar said.

He pointed out that now there are “some issues” with banking operations between the two countries, and expressed the hope that this will not become “a big problem.”

“With proper banking, this can be resolved,” the diplomat said.

At the end of March Russia suggested India to use the Financial Messaging System (FSFS) for bilateral transactions to make settlements in rubles and rupees. The Iranian ambassador said that the countries are discussing the issue of connecting Iranian banks to the SPFS of the Central Bank of the Russian Federation.

According to the Ministry of Economy, the share of settlements with the EAEU countries in national currencies is more than 75%. The EAEU includes Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan. At the end of August, at the Eurasian Intergovernmental Council, the member countries of the EAEU approved recommendations for further expanding the use of national currencies in mutual trade.

In September, the member countries of the Shanghai Cooperation Organization (SCO) at the final meeting approved Samarkand Declaration, which supported an increase in the number of transactions using national currencies.