Exchange market approaching equilibrium
According to the National Bank, in April 2014, foreign currency net purchase by individuals and legal entities on the domestic market was at a record low since early 2014, amounting to USD 13 mln. Due to improvements in Belarus’ foreign trade, in April 2014 Belarus’ legal entities became net sellers of foreign currency. Stabilisation of the foreign exchange market will reduce pressure on the BYR exchange rate, will slower the pace of spending the international reserves on smoothing out BYR exchange rate fluctuations, and will reduce the need in foreign borrowing to service domestic and public debt.
The Labour and the Tax Ministries are considering the possibility to include persons engaged in some economic activity without forming a legal entity in the social security system. When the decree No 337 comes into effect, the number of private entrepreneurs is likely to reduce due to the possibility of reducing the tax burden when switching to a tax payment as an individual. 95% of self-employed, including PE, pay insurance premiums on the basis of the minimum wage. The number of self-employed citizens is expected to increase, the number of insurance contributions to the pension system from PE will decrease, the number of citizens who will pay a fee to finance government spending will decrease by several tens. Self-employed citizens have the alternative not to pay social security fees and save resources for future pensions, which, given the gradual restriction by the state of pension requirements could be a more long-sighted option.