Weak Russian rouble deteriorates Belarusian trade balance

According to the National Statistics Committee, in January – April 2015 Belarus’ foreign trade deficit totalled USD 934.7 million. One of the main culprits of the deteriorating foreign trade was price cuts on goods supplied to Russia and the Russian Central Bank’s intention to increase gold reserves by buying foreign currency on the market. Due to weakening of the Russian rouble, the Belarusian rouble would depreciate against the currency basket too; exporters’ foreign currency proceeds would reduce, the competition on the Russian market would increase and Belarusian companies will suffer financial losses. In addition, some prices would go up on the domestic market. In order to remedy the situation, the Belarusian government may take additional measures to limit the access of imported products to Belarusian retailers.