Multi-currency system in practice
Because the junta is not going to lift the blockade of Donbass, it is quite natural that the attempts of building their own financial system, which is adequate with respect to the existing realities in the people's republic, are being renewed. For now they have selected a compromise version, where several currencies can be used simultaneously on the territory of the LPR.
Major transactions in the LPR will use US dollars, minor ones - in rubles and hryvnas
Three major currencies will be used in the self-proclaimed "Lugansk people's republic" : hryvnas, roubles, and US dollars. Major transactions will use the American currency. This was announced by TASS on March 7th with a reference to the head of the LPR Igor Plotnitsky. "Smaller transactions will use hryvnas and roubles, bigger ones - dollars," - he said. "For now this is the way it will be, although, according to our polls the majority tends towards the ruble " - added Mr. Plotnistky. The head of the LPR also instructed the ministers to provide double price tags for all stores - in rubles and in hryvnas. The head of the LPR announced the decision to use multi-currency financial system due to rapid depreciation of the hryvna in the end of February.
http://www.kommersant.ru/doc/2682971 (in Russian) - link
PS. Actually, I'm quite familiar with double price tags in rubles and in hryvnas since Crimea of the times of the spring of 2014, when both the hryvna and the ruble were used simultaneously. However, after passing the appropriate political decision, the hryvna had disappeared from circulation quite quickly and only the ruble had remained. In Donbass it won't be that easy, of course, but open circulation of the ruble speaks very well of the fact that in practice Donbass continues to move away from Ukraine, turning into another unrecognized state entity. The choice of dollar as the main reserve currency is also obvious under the conditions of unstable state of the exchange rates of both the ruble and the hryvna. These measures will lead to legalization of a part of the black market in the nearest time.
Original article: http://colonelcassad.livejournal.com/2080308.html (in Russian)