RUSSIAN BANKER RECOMMENDS DROPPING TWO SMALLEST COINS Public Deposited
- 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. -EditorIn 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. Question: By producing these coins you are losing money, aren't you?
Answer: We are losing. 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/) - 2009-01-04
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