Written by Reuters

On Friday, April 5th, the Central Committee overwhelmingly rejected major currency reforms. The proposal would have tied the Soviet Ruble, which currently is not tied to any precious metal for value, to the gold standard and abolished the Soviet Transfer Ruble.

This new currency is used for trade between the Soviet Union and its satellite states that is not recognized by other nations, in a bid to strengthen the weak Soviet currency and its role in the international financial market. The proposal would have strengthened the Soviet Ruble, given the currency a value backed up by the Soviet Union’s gold reserves, and make it the sole currency of the Soviet Union.

The main argument against the reform proposal was that many delegates believed the proposal was too capitalist, while the few delegates who supported the measure felt the reforms were not capitalist since the Ruble would be tied to Soviet gold.