‘International Finance’: Lecture by Deputy Minister of Finance (2013-2015) Dmitry Pankin
On 22 January, the Master's programme ‘Finance’ hosted a guest lecture by Dmitry Vladimirovich Pankin, one of the most authoritative experts in the field of international finance. The listeners had a unique opportunity to talk to the expert, who has more than 25 years of experience in senior positions in international financial institutions and government agencies.
Dmitry Pankin has held key positions in the financial sector, including Deputy Minister of Finance of the Russian Federation (2004 - 2011, 2013 - 2015), where he headed the Department of International Financial Relations, Public Debt and Financial Assets. In different years of his career, he also headed the Federal Service for Financial Markets of the Russian Federation, was Chairman of the Board of the Eurasian Development Bank and President and Chairman of the Board of the Black Sea Trade and Development Bank.
Dmitry Vladimirovich started the lecture by discussing the fundamental topic - the balance of payments, emphasising its role as the main tool for analysing international financial flows. The speaker explained how to properly understand the current and capital accounts and gave examples illustrating why a positive current account balance may be accompanied by capital outflows. The example of China was used to show how the structure of the balance of payments reflects the economic priorities of countries. Special attention was paid to international currencies. Professor Pankin explained why the US dollar remains the leading currency in global settlements despite the declining share of the US in the global economy. He also spoke about the prospects of the euro and the Chinese yuan, noting the obstacles to the latter becoming a full-fledged world currency. The discussion of the idea of creating a single currency for BRICS countries also aroused interest, but the expert expressed scepticism about the lack of economic coordination between the participating countries.
An important part of the lecture was the discussion of digital currencies. The speaker highlighted the key differences between cryptocurrencies, such as bitcoin, and state digital currencies, such as the digital ruble. He noted that cryptocurrencies attract users with their decentralisation, but their stability directly depends on trust in the technology. State-owned digital currencies, on the other hand, are more stable thanks to the support of central banks, but retain a certain dependence on regulators. Professor Pankin also touched upon the topic of the global infrastructure of international finance, emphasising the importance of unified standards such as international auditing standards, the SWIFT system and the Basel III recommendations.
The lecture ended with a lively discussion in which participants asked questions about the prospects of digital currencies, the work of rating agencies and the future of the global financial system. Students and teachers thanked Dmitry Vladimirovich for the rich and informative report, noting that it helped to gain a deeper understanding of the key processes shaping the modern financial world.