Economist about denomination in Belarus: No sense in having kopeks as they depreciate fast


The denomination has been brewing for a long time, thinks economist Leanid Zlotnikau.

“We have a GDP of 600-700 billion rubles, the total social product is already beyond quadrillion. There are technical problems, as all computer programs are designed for certain bit capacity, we need to make an appropriate unit measure. It can be psychologically difficult to work. If you have a salary of 15 million – it is understandable, but how to explain to people the process of GDP growth? When foreigners come, they get shocked by the prices. Just like in Zimbabwe,” economist said in an interview with Belsat.eu.

Having kopeks does not make sense, as they depreciate quickly, the expert believes.

Read also: Belarus to have 10000-fold denomination of national currency on July 1, 2016

“The things is that we do not see an end of the inflation. We have such a state of the economy that will lead to a further fall until a new economic model is in place. Hence the devaluation and the high rate of growth and poverty,” said Leanid Zlotnikau.

The denomination will be held from July 1, 2016 until December 31, 2016 according to the decree of the President. Banknotes of 2000 in the form of banknotes will be replaced by banknotes of 2009 in the form of banknotes and coins in the ratio of 10 thousand rubles of 2000 to 1 ruble of 2009.

Zmitser Kustouski, belsat.eu

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