The government plans to reach a balanced exchange rate in October

Category status:
April 22, 2016 17:59

The Government and the National Bank expect to eliminate the multiplicity of exchange rates in October, with a balanced exchange rate at a level between the current official and the market rates. Thereby they hope to resume negotiations with the IMF on a new stabilization loan.

The Government and the National Bank expect that the multiplicity of exchange rates on the Belarusian foreign exchange market will be eliminated in October, with a balanced exchange rate at a level between the current official and the market rates. This will restore the confidence in the Belarusian ruble, which, in turn, should affect the inflow of deposits to the banks and those funds could be used for loans to the state programmes.

The Vice Premier said that the main stumbling block during the discussion of the new program was the lack of user-friendly exchange rate, which prevented Belarus from beginning of full-fledged negotiations. Mr. Rumas assured that with the opening of the supplementary trading session on the BSCE, this problem would be solved and added that the IMF welcomed the measures undertaken to counteract multiple exchange rates.

This was announced at a press conference on 21 September by Deputy Prime Minister Sergei Rumas. In addition, Belarus intends to intensify negotiations with the IMF on a new Stand-by programme. For instance, the government delegation flew to Washington to attend the annual meeting of the IMF and to negotiate the assessment of the macroeconomic situation in the country. The Vice Premier said that the main stumbling block during the discussion of the new program was the lack of user-friendly exchange rate, which prevented Belarus from beginning of full-fledged negotiations. Mr. Rumas assured that with the opening of the supplementary trading session on the BSCE, this problem would be solved and added that the IMF welcomed the measures undertaken to counteract multiple exchange rates.

Comment

The Government needs the IMF loan in order to maintain the gold reserves at an adequate level, and for external guarantees. The loan will bring down the current high rate of the Belarusian Eurobonds, and will help to return deposits into the banking system. Moreover, it could act a “safety cushion” while negotiating with investors the privatization of Belarusian assets on equal terms (currently a number of investors, primarily Russian, have stronger negotiating position).

Similar articles

Minsk attempts to make up for image losses from military exercises by opening to Western values
October 02, 2017 11:49
Image: Catholic.by

The Belarusian authorities regard the Catholic conference as yet another international event to promote Minsk as a global negotiating platform. Minsk’s proposal to organise a meeting between the Roman-Catholic Church and the Russian Orthodox Church is rather an image-making undertaking than a serious intention. However, the authorities could somewhat extend the opportunities for the Roman-Catholic Church in Belarus due to developing contacts with the Catholic world.

Minsk is attempting to lay out a mosaic from various international religious, political and sportive events to shape a positive image of Belarus for promoting the Helsinki 2.0 idea.

Belarus’ invitation to the head of the Holy See for a meeting with the Patriarch of the Russian Orthodox Church should be regarded as a continuation of her foreign policy efforts in shaping Minsk’s peacekeeping image and enhancing Belarus’ international weight. The Belarusian authorities are aware that their initiative is unlikely to find supporters among the leadership of the Russian Orthodox Church in Moscow. In Russia, isolationist sentiments prevail.

In addition, for domestic audiences, the authorities make up for the lack of tangible economic growth with demonstrations of growth in Minsk’s authority at international level through providing a platform for religious, sportive and other dialogues.

Recent trends