The Hague Convention prohibits currency exchange in the occupied country. Russia is threatened with expulsion from the IMF.
Russia's intention to introduce the ruble in the Kherson region – a purely political action, which will be recognized as another crime of Russia and its Central Bank – a violation of the Hague Convention. This was stated by CASE Ukraine banking expert Yevhen Dubogryz.
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According to the expert, this has nothing to do with the economy or protection of the population. Ukraine has the ability and ability to make a full circulation of the hryvnia in this area.
“Actually, all this time of invasion, more than two months, it is so. Settlements in hryvnias pass, are accepted by banks and the population, there are no insurmountable obstacles with it”, – the expert points out.
Also, he stressed, this is a direct violation of the monetary sovereignty of Ukraine and the National Bank of Ukraine.
” Monetary sovereignty “is the right of the state:
- issue (issue) a currency – banknotes and coins – which are the only legal tender in the country
- determine the value and change the value of the currency
- regulate the circulation and use of this currency and others monetary units (means of payment) in the country.
“The introduction of the ruble on the territory of Ukraine is a direct violation of all three of these principles. In fact, it can be called a direct declaration of war by Russia, in this case by the Russian Central Bank, recognition of invasion and occupation of another sovereign state,” said the expert./p>
Also, this action should be considered as a violation of the 1907 Hague Convention and IMF statutes.
The expert stressed that there were cases when another currency was introduced in the occupied country, although the country was not recognized as one that lost its sovereignty – for example, during the occupation of Iraq in 2003. However, in order for such actions not to violate the Convention, at least one of two conditions must be met. The first is the absence of an internationally recognized leadership of the country (as in the case of Iraq in 2003; the UN Security Council did not recognize the violation of conventions). The second is the impossibility of carrying out any other type of money circulation, except to introduce the occupier's currency.
“Both of these conditions are not met in the case of Kherson region. Ukraine's leadership on the ground – the President, the Government, the Verkhovna Rada and the NBU – is legitimate and recognized in the world. not damaged, EPS (electronic payment system) is working, bank branches are working, the only nuance may be the delivery of cash, and this is the nuance that will prevent the full circulation of the hryvnia, “he said.
Therefore, the introduction of the ruble in the occupied territories, in particular, in the Kherson region, will be considered a violation of the Hague Convention.
The expert also drew attention to the ethics of central banking.
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The “introduction” of “one's own” currency in another country is probably one of the most unethical things in terms of the work of central banks. “Currency. Or even the most unethical. So much so that it is not even prescribed directly as a violation of ethical or legal standards – because no conscious central banker can simply think of such a thing,” he said.
Legally, this will mean at least the issue of recognizing the Central Bank of the Russian Federation as an illegitimate organization at the international level. At most, it is a question of excluding Russia from the IMF.
“In fact, Elvira Nabiulin and her deputies – who are well aware of this – have all the grounds to refuse to perform such a task, no matter who it comes from. Or, as an option, to resign all the grounds after receiving such an order, “- said the expert.
