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.
According to Belstat, in August 7,600 people were dismissed, including 4,800 civil servants. Dismissals of civil servants were due to the optimisation in the public administration by up to 30%. Some civil servants would retain their job however would lose the status of a civil servant. Vacancies on the labour market are likely to reduce in number, thanks to the optimisation, the state administration would increase wages for public servants. The payroll fund for retained employees is likely to increase and some former state employees are likely to get jobs in affiliated organizations. The optimisation of the state apparatus should complete by January 1st, 2018, and some former civil servants are likely to join the ranks of the unemployed.