Response to 30% tax on purchasing foreign currency: Belarusians resort to exchange websites


A temporary 30% levy on purchasing foreign currency has been enforced in Belarus today, which is commonly regarded as a disguised devaluation.

Website prokopovi.ch named after Piotr Prokopovich, notorious ex-Chair to the National bank of Belarus who made sounding promises not to devalue the Belarusian ruble, has resumed its activities. The website is set to make possible immediate buying and selling of foreign currency without involving banks and paying 30% commission. As a response to people’s demand for foreign currency, Prokopovi.ch was founded and actively working in 2011, when the domestic currency fell by 60%.

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The National Bank hopes the temporary levy will be lifted if the Russian ruble gets stronger against euro. Zmitser Kruk, a Belarusian economist, says such optimistic forecast should be brought into question.

“As I see it, a change of exchange-rate regime or a shift to an appropriate exchange rate or even devaluation [of the Belarusian rubel] by 30%  would be more reasonable. The step they have made today is a half-way decision, it fails to resolve the situation but it does bring uncertainty in. That is why it will be no effect of it,” he told Belsat.eu.

Mr Kruk also expressed doubt that the National Bank’s would be able to meet banks’ demand for foreign currency even after collecting 30% fee.

www.belsat.eu/en

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