The Belarusian government and National Bank have identified a way out of the currency crisis. The introduction of alternative exchange rate on the OTC market will become one of the measures to combat the lack of currency in the country. This was announced by the deputy chairman of the National Bank, Nikolai Luzgin, on April 19.
«National Bank cancels the previously sent letter to the banks, allowing 10% deviation in formation of the Belarusian ruble exchange rate in the interbank sector. The second session on the interbank foreign exchange market will be opened,» informed the NBB deputy chairman, RIA «Novosti» news agency.
«We consider the introduction of such forms of work, as an additional session on Currency and Stock Exchange, he said. — There was such a practice in 1990. That is, there will be set the rate of the free purchase-and-sale of foreign currency adjusted for supply and demand at the stock exchange in parallel maintaining of the basic trades, where most work is carried out within the framework of the mandatory sale of foreign currency for certain purposes of critical import,» he explained.
With the stabilization of the situation on the currency market, the National Bank will also consider other measures to further liberalize the foreign exchange market and remove existing restrictions, said Nikolai Luzgin.»We consider the introduction of such forms of work, as an additional session on Currency and Stock Exchange, he said. — There was such a practice in 1990. That is, there will be set the rate of the free purchase-and-sale of foreign currency adjusted for supply and demand at the stock exchange in parallel maintaining of the basic trades, where most work is carried out within the framework of the mandatory sale of foreign currency for certain purposes of critical import,» he explained.
Nikolai Luzgin noted that the priority in the purchase of foreign currency will be given to the subjects of management for purchase of medicines and natural gas.
According to a representative of the National Bank, measures, taken by the Government and the BNB, will ensure a positive real value of money market rates, as well as remove the restrictions on the formation of the Belarusian ruble in transactions of buy-and-sell of foreign currency between banks and business entities, BelTA informs.
«Having reached the equilibrium value of the Belarusian ruble exchange rate in transactions of buy-and-sell of foreign currency between banks and business entities, there will be taken further measures to stabilize the situation on the domestic market with the gradual adoption of a single Belarusian ruble exchange rate in all segments of the market,» said vice-president of the National Bank of Belarus.
In addition, Nikolai Luzgin said in order to stabilize the financial and economic situation in the country, Belarus would impose a moratorium on the adoption of new state programs without providing them with non-issuing sources of funding.
There is a rule of mandatory sale of 30% of foreign exchange earnings on the stock exchange in Belarus, where the National Bank tightly controls the ruble. There’s a principle in operations with a population in the market of foreign currency: National Bank exchange rate +/-2%.
It was reported earlier that the Belarusian interbank market hadn’t revived after the National Bank’s 10% margin increase on the sale of currencies outside the stock exchange because of insufficient measures to restrict domestic demand, said Korrespondent.net.
Foreign currency fever in Belarus, spurred by distrust of the national currency and soaring trade deficits, drained exchange reserves of the country. Earlier, the National Bank took a step toward a soft devaluation of the ruble, having increased margin of the exchange currency up to 10% between banks and on the OTC market.
Belarus is negotiating with Russia on a $1 billion loan to support the economy and expects to receive about another $1 billion from Russia-controlled Crisis Fund of EurAsEC. Belarusian authorities expected to have negotiated on a loan within 20-30 days, but representatives of the Russian Ministry of Finance were more restrained in the estimates.
