Dollars Nyet, Euros Dah?

[viking]

I have been corresponding with several RW's and they are telling me that because of the exchange rate of rubles aganist the dollar, many merchants are now wanting to accept only euros or rubles instead of dollars. I did not notice this when I was in SPB 3 months ago, but was wondering what I may expect when I might return a few months from now. Anybody hearing the same thing?

[beattledog]

This is the future, but it is happening now.  If Iran demands the petrol be payed in  eurodollars, instead of dollars, we are in trouble as a country.  much of the debt in this country is being held by overseas countries

beattledog.

[ConnerVT]

Technically, the only money merchants can accept is the Ruble.  In 'private' transactions, some may be willing (eager?) for US or Euro dollars.  When the Ruble was unstable (and devalued), some kept foreign currency as an insurance policy.

That said, whenever someone wishes to convert their money from one currency to another, the exchange usually favors one party or the other.  Usually, it is the person (more) wishing to exchange money whom pays the penalty.  If you have USD, changing it to Euro, then changing it to Ruble will hit you with the penalty twice.

[jb]

Viking,

many merchants are now wanting to accept only euros or rubles instead of dollars.

Strictly speaking, it is against the law in Russia for a merchant to sell anything for either dollars or euros, it is up to you to exchange your money at the licensed money changer, (controled by the banks) and do your shopping with Russian currency.  About the only people who routinely accept foreign currency is taxi drivers.  Back in the bad old days the drivers would accept a number of countries money, UK pounds, German marks, USD, etc., now it's either USD or Euros only.

[PeeWee]

I have been corresponding with several RW's and they are telling me that because of the exchange rate of rubles aganist the dollar, many merchants are now wanting to accept only euros or rubles instead of dollars. I did not notice this when I was in SPB 3 months ago, but was wondering what I may expect when I might return a few months from now. Anybody hearing the same thing?

Last week the travel agent in Russia asked for payment in either euros or rubles. He would not accept dollars. Seems consistant with what you are saying. I did see jb's post about the laws. Another agent in Moscow would accept dollars, however. It was a large travel agency so maybe they are somehow exempt from this? It does not matter. It seems simple enough to convery your currency. I always do.

Peewee

[jb]

When you pay for anything by credit card internationally, the recipient is usually automatically paid in local currency, check your Visa card statement and see if there isn't an exchange rate listed there next to the transaction telling you exactly how many Rubles the travel agency account was credited with.  If travel agencies list payment in either dollars or euros, mostly they are trying to avoid hassles in dealing with strange and little used currencies, such as the Philippine Peso or Brazilian Real, or something else he might have difficulty in figuring out how much to charge for his services.  Calculations in dollars or euros is just faster and easier without the possibility of wild fluctuation of some money market values.

[ConnerVT]

A travel agent (especially if they market to foreigners wishing to come to Russia) will likely be partnered with another entity outside of the country, avoiding some of the difficulties that may exist in getting money in/out of Russia.

[Bruno]

Calculations in dollars or euros is just faster and easier without the possibility of wild fluctuation of some money market values.

And Ukrainian are very good and fast for make the change dollars in Euro... In May 2005, in Nikolaev, a taxi ask me 5$... i ask how much in Euro... He reply : The same, 5 euro  The best thing is changing your dollar or euro in locale money...

[Manny]

The travel agent I use in Togliatti prefers payment in Euros - they have a Euro bank account set up within Russia to cater to this end.

I have experienced no difficulties with the US Dollar in Russia (I always carry some as a default currency) but they are becoming more accustomed to Euros generally, but then again, some FSU countries will switch to the Euro next year and Europe is nearer than the US so it is more logical perhaps.

Also, I have had no trouble exchanging £ Sterling in Russia either, usually at quite a good rate! We can buy Roubles in UK airports no problem (banks have to order them - 3 days)

My lady tells me the dollar is dying slowly in Russia and locals wanting to keep some foreign currency now are tending to keep it in Euros.

That said, she arrived in Estonia to meet me last week clutching a handful of $100 bills to change, I asked her why not Roubles (as they are easily accepted in Estonia) and she shrugged, I suggested Euros as a default as the Estonian Kroon is fixed against the Euro and they will be in the Euro next year - she shrugged again and said "My darling, I am the Russian girl, our family always have dollars" 

Russian inconsistency at its finest!

[andrewfi]

It makes some sense for people to be unwilling to accept dollars for cash transactions, apart from the illegality. Over the past 12 months the dollar has become worth some 8, or more % less. The Euro has been pretty stable. There was a time when the dollar was stable.

jb is correct about the credit card transactions, usually they are denominated in dollars, but the recipient gets the value in local currency, the exchange rate is set by the credit card companies.

On a side issue, as a lot of my income is denomintated in dollars with US based clients, I am an unhappy bunny, but when I bought some stuff from the US a day or two ago and saw a rate of over $1.8 to the pound I chuckled to myself and opened a US based hosting account! My inputs, denominated in dollars are getting cheaper by the day, but my income is devaluing at the same rate and my income is greater than my expenses.