Along with the constant growth of money supply, the state has been stimulating industries’ financing. Even unpopular goods production remains state-supported. According to Stanislau Bagdankevich, a former head of the National Bank, the factors above are the key reasons for the “crawling” devaluation which most Belarusians have already felt the sting of.
In spite of the tight economic situation, the authorities have drawn the line at another sharp devaluation, the expert believes. “The dollar exchange rate will raise to Br9,000-10,000, such devaluation is entirely predictable,” Stanislau Bagdankevich stressed in his interview to Belast TV.
On January 2, 2006 the Belarusian ruble was devaluated: its rate to the dollar was reduced by 20.45 %. Another devaluation (by 56.3 %) took place on May 24, 2011. On September 14 the national currency was de facto devaluated again: after the first additional trading session at Belarusian Currency and Stock Exchange US dollar exchange rate amounted to Br8.600 having exceeded the official one (Br5.355) by 1,6.