Does Belarus need US dollar?
Experts reckon Belarusians have only the psychological dependence on the US dollar. But we will fail to get rid of the American money. According to a report from the Ministry of Statistics, Russia accounted for 32 percent of Belarus' exports, while EU - for 43.9 percent. The share of imports from Russia amounts to 60.7 percent; the share of imports from the European Union stands at 20.9 percent.
Why does Belarus need the US dollar if we trade mainly with Europe and Russia? Economist Leanid Zaika reckons that the dollar performs a function of the world's money. Belarus still makes most of its payments in dollars.
Leanid Zaika: “In the global monetary system, the dollar performs a function of the world's money. That's why it determines more significantly a balance of currency flows. In trade with Russia, 80 percent of payments are made in dollars. Both the Russian oligarchs and Belarusian businessmen like dollars equally. The paradox is that oil is traded for dollars since 1991”.
Alexander Luchanok, the director of the Center for Macroeconomic Regulation and Research at the National Academy of Belarus, believes that it would be more reasonable to tie to the Russian rouble, since our trade turnover with Russia is the largest. Moreover, the Russian rouble has already been tied to both the dollar and euro. However, the psychology of the population still makes us tie to the dollar as well, in the view of the economist.
Economic commentatior Alexander Chubrik reckons that we are tied to the dollar mainly due to people's love to this currency.
“We are dependent on the dollar not because we pay with it. Even if we did not pay in dollars in our foreign trade, we depend on it, because a majority of the population saves mostly in dollars. The exchange rate is currently quoted against the dollar. Wages are also promised in dollars. People have long since trust and like the dollar”.
However, this love is dangerous, according to Leanid Zaika. The dollar has betrayed us, and it is high time to drop it, says the specialist.
Leanid Zaika: “We should get away from the dollar. You know how they sever the girl when she betrays. The dollar has started betraying. It has become feeble and variable”.
But even if Belarusians fell in love with the other currency, it would not be possible to do without then dollar. The American currency is loved in Russia and other countries. Therefore, we will keep trading and tying to the dollar in the future.
Why does Belarus need the US dollar if we trade mainly with Europe and Russia? Economist Leanid Zaika reckons that the dollar performs a function of the world's money. Belarus still makes most of its payments in dollars.
Leanid Zaika: “In the global monetary system, the dollar performs a function of the world's money. That's why it determines more significantly a balance of currency flows. In trade with Russia, 80 percent of payments are made in dollars. Both the Russian oligarchs and Belarusian businessmen like dollars equally. The paradox is that oil is traded for dollars since 1991”.
Alexander Luchanok, the director of the Center for Macroeconomic Regulation and Research at the National Academy of Belarus, believes that it would be more reasonable to tie to the Russian rouble, since our trade turnover with Russia is the largest. Moreover, the Russian rouble has already been tied to both the dollar and euro. However, the psychology of the population still makes us tie to the dollar as well, in the view of the economist.
Economic commentatior Alexander Chubrik reckons that we are tied to the dollar mainly due to people's love to this currency.
“We are dependent on the dollar not because we pay with it. Even if we did not pay in dollars in our foreign trade, we depend on it, because a majority of the population saves mostly in dollars. The exchange rate is currently quoted against the dollar. Wages are also promised in dollars. People have long since trust and like the dollar”.
However, this love is dangerous, according to Leanid Zaika. The dollar has betrayed us, and it is high time to drop it, says the specialist.
Leanid Zaika: “We should get away from the dollar. You know how they sever the girl when she betrays. The dollar has started betraying. It has become feeble and variable”.
But even if Belarusians fell in love with the other currency, it would not be possible to do without then dollar. The American currency is loved in Russia and other countries. Therefore, we will keep trading and tying to the dollar in the future.
