In Belarus currency rates out of control

Currencies rates went up by 130% at the interbank market in comparison to the official rates set by the national bank. As of today, one dollar was worth 7250 rubles and one euro – 10 000 rubles.

In Belarus there are still three different currencies rates – the official one, set by the central bank, the interbank market rate and the currency exchange rate. Only people in dire need can buy currency at the lowest rate. The price increase at the interbank market also led to more expensive currencies in the exchange offices. On Monday, dollar rate went 500 rubles above the value of 4000 rubles, as recommended by the central bank.

Sarhiey Chaly, a Belarusian economist, thinks that the central bank has lost control over the situation. In his opinion, “devaluation-inflation spiral is spinning, accelerating each other”. -Previously, the rate would change by a 100 rubles a day, now the difference is in thousands. -We have wasted resources which could have been used to keep the situation under control – he added. Mr. Chaly thinks that the only way to alert this situation is for the authorities to let the currency fluctuate at the free market rates.

Pavel Prakopovich, a director of the National Bank was supposed to come back to work after a month of absence due to the heart surgery.


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