Inflation

Last year, after the presidential elections in the Russian Federation, the country was filled with rumors about the upcoming denomination. Rumors were fueled by false information that the government, after the presidential elections, decided to zero the ruble. In financial circles, this information is considered empty talk. “Inflation and only inflation can lead to denomination,” experts say. Today the Russian banking system is going through difficult times, which is why such rumors are circulating. The crisis that hit the Russian financial market in 1988 left an indelible mark on many people. But, as analysts assure, there is no need to wait for a crisis next year. The crisis, if it does occur, will affect only the system of individual banks, and on the whole the Russian banking system is quite strong and stable. «If anything unexpected happens,» say financial analysts, «the central bank will intervene.».

The experts of the financial world do not see the reasons for the denomination. Expectations of sky-high inflation could lead to denomination. But this will happen only when Russia is guided in economic issues by the developed countries of the West. In addition, analysts argue that denomination is impractical when inflation is fast. With this level of monetary inflation, it would be possible to print money in a year.

Some also said that the denomination would supposedly help hide the rise in prices, but analysts do not agree with these versions. «It is impossible to hide the rise in prices for goods, no cropping of zeros,» says the president of the bank Kirill Petrov.

Indeed, there is no reason to carry out denomination when inflation is only 5-6 percent. In addition, the implementation of the denomination reform requires a lot of money. It is required not only to print a huge number of new bills, but also to conduct a wide organization campaign. According to RBC Daily, a source from the Central Bank, who did not want to be identified, said that there is only one option leading to denomination. This is a corporate interest, the essence of which is to master the budget allocated for such an operation..

Many Russians who are ignorant of the financial intricacies of Russians are firmly entrenched that denomination and default are essentially the same thing. People often talk about de-inflation, devaluation and denomination. All this is due to the expected crisis in the financial world, which analysts themselves do not talk about..

Whether inflation will occur or not, whether the state will launch the denomination process or will devalue, one can only guess.