Belarus hopes to unify exchange rates in May
2011-04-22 17:18:58
Belarus expects to unify the two exchange rates introduced earlier this week in May, after Minsk receives financial aid from Russia, Anatoly Moroz, head of the Belarusian central bank's foreign exchange regulation and control directorate said on Friday.
"We are counting on foreign loans," Moroz said. "We expect that talks with Russia on a loan will bring a positive result."
The Belarusian ruble has recently come under pressure because of a large trade deficit, generous wage increases and loans granted by the government ahead of last December's elections, when President Alexander Lukashenko won his fourth term. The central bank's foreign exchange reserves fell 20 percent in the first two months of this year to $4 billion due to the trade deficit.
Russia wants to see a comprehensive economic stabilization plan before extending bailout loans to Belarus.
On Wednesday, the Belarusian central bank announced the launch of a second foreign exchange trading session and allowed the currency to float freely for trade between banks in a move which analysts said meant devaluation of the national currency.
On Friday, the central bank set the official ruble exchange rate, used for mandatory export revenue sales and retail cashpoint operations, at 3,044 Belarusian rubles per dollar compared to the current interbank rate of around 5,000. Moroz said 3,800 rubles per dollar was a proper rate at that moment.
Belarus has been facing a dire lack of foreign currency for about a month, with citizens queuing to buy foreign currency and banks introducing restrictions on withdrawing it on bank cards. Moroz said that cash foreign currency may also appear at cashpoints in May.