According to experts, ruble devaluation might translate to 40 percent loss of revenue for Belarusians. Belarusian Deputy Minister of Economy Andrei Tur promissed compensation for state employees. The Minister noted the problems in the supply of goods that result from inflation. Tur also said that the government may soon introduce a program of significant cuts in budgetary expenditures.
Along with the devaluation of the Belarusian ruble, state-owned company Bielnieftchim raised fuel prices on average by 20 percent, which has been the largest increase this year. According to a Belarusian economist Tatsiana Manionok, it was a necessary step, because Belarus pays for oil in dollars. Moreover, in her view, the production of fuel for the internal market does not bring profits, refineries earn only on exporting fuels. “If oil costs will increase, the export revenues will decline and the only way to ensure profitability is to increase domestic market prices” – she added.
According to a former head of the National Bank of Belarus Stanislav Bahdankievich, devaluation was a step in the right direction, but it was conducted in a wrong manner in – by administrative decision rather than market and currency exchange. The economist also believes that the Belarusian authorities have still not informed the public how they envision the Belarusian currency stabilization program. “Nobody knows how the market will be supplied with euro and U.S. dollar, Russia has not yet paid the loan and if they do, according to government data – it will be only 800 billion dollars and there are no other credit offers in perspective “- Bahdankievich said in an interview with Belsat. In his view, without presenting a plan to remedy the situation of economic, a devaluation by 71 percent total carried out since the beginning of this year is only half of the necessary solution. “Neither the government nor the National Bank has not informed what is being proposed in addition to printing worhtless money. There is is a closed system of governance in the country and the Belarusians do not know what is going on. “- he added.
On Monday, the Belarusian government devalued the Belarusian ruble by more than 50 percent. For many months there has been a deficit of foreign currencies and at the same time several currency exchange rates has been maintained in Belarus. The recent decision by the Belarusian authorities is aimed at restoring balance in the currency market.