PROSPECTS OF MONETARY INTEGRATION WITHIN THE EURASIAN ECONOMIC UNION: CONVERGENCE CRITERIA ANALYSIS

Abstract

The EAEU countries are moving towards economic integration, lifting all barriers to the movement of goods, services, labor and capital. Liberalized and harmonized legal framework in the financial sector and the degree of development of the markets are among major conditions for the establishment of a full-fledged economic union. Therefore, this article’s subject matter is the financial activity of Belarus, Russia and Kazakhstan. The article seeks to analyze and identify prospects of establishing a monetary union through coordinated regulation and deeper economic integration of the EAEU states. The article is devoted to problems of monetary integration of the EAEU countries. It addresses main indicators of convergence between the countries, as described in the theory of currency areas and in normative documents, such as the movement of capital, inflation, openness of the economy, refinancing rate, state budget and public debt. Conclusions are made that the countries are ready for monetary integration. All economic sectors are to be fully harmonized to achieve further integration and form a monetary union. First of all, attention should be drawn to the convergence indicators specified in the EAEU Treaty. The logical and statistical analysis and synthesis methods and comparative and historical analysis methods were used to study the development level of the financial markets.