As part of the roadmap to deepen the integration of Belarus and Russia, the two countries’ leading banks agreed on the harmonization of monetary policy. However, there is no talk about the introduction of a single currency.
“We have ultimately agreed with the Central Bank of Russia to harmonize the monetary policy in specific fields. Belarus and Russia should have one monetary policy regime, i.e. the targeting of inflation,” news agency Interfax quotes Pavel Kalaur, Chairman of the National Bank of Belarus.
According to him, from 1 January 2021 on, Belarus will switch to inflation targeting, i.e. a set of measures of controlling, so that the inflation in the two countries could be maintained at roughly the same level.
Belarus might be part of the Union State, but it will not abandon the national currency, Kalaur stressed.
“The talks [about the single currency] are groundless. They agitate the public, form excessive inflation and devaluation expectations. But such statements have no reason and ground at all! Within the framework of the EAEU, we have considered the issue of establishing a single market; introducing any supranational currency is out of the question,” the top official said.
