Despite euro, buck rules in Russia

By CNN Moscow Bureau Chief Jill Dougherty

MOSCOW, Russia (CNN) -- The euro's here -- but most Russians couldn't care less.

While the ruble is the official currency of Russia, the unofficial currency is still the U.S. dollar.

People pay for merchandise in rubles but overwhelmingly save in dollars.

According to some estimates, Russians hold up to $50 billion in cash -- often keeping it at home.

"The dollar is more reliable, and the majority of people here think so too," one woman says.

Russians even think in dollars, and they have their own Russian word for it: bucks.

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There's even the joke about the two Russians who go to New York and take a look at the money. One guy says to the other: "This is amazing! They're using our bucks!"

So for Russians who will be using the euro, switching to the new single European currency goes beyond the issue of money, say some international bankers here.

"This is more a psychological factor for the population than a technical problem for banks," says Eugene Toutkevitch of Raiffeisen Bank.

The Moscow branch of the Austrian bank Raiffeisen began working last year on switching to the euro, training staff and bringing new equipment online to deal with it.

For example, euro notes are thinner than either the dollar or the ruble, the bank says. Counterfeiting is also a major problem in Russia.

On the macro level, Russia will have to deal with the euro. Up to 40 percent of its international trade is with European Union countries.

Up to 1 million Russians travel abroad each year, and many of them will be using the euro -- as will Russians who work for companies with commercial ties to Europe.

But for now at least, many average Russians don't see why they should switch from dollars to euros.

"Nothing's gonna change so far," says one man. "If the euro increases in value versus the dollar, then, of course, I'll have to rethink it."

In Russia, the buck still rules.