Iosub: National Bank gives and takes. This is devaluation

The currency fee will be lowered from 30% to 20% on December 30, the National Bank announced. The decision was made ‘in connection with the normalization of the situation in the money market’.

Economist and financial analyst of the official partner of Alpari in Minsk Vadzim Iosub thinks that the National Bank’s last step and policy are a positive thing.

 “As soon as the fee was introduced for legal and physical entities, we received the plurality of exchange rates and it was necessary to get rid of it as soon as possible. It had to be done before February 1. The today’s events are the first step in this way (the decrease of the rouble exchange rate by 7% and the decrease of the currency fee to 20%). The National Bank is decreasing the fee and is increasing the dollar exchange rate at the same time.”

The steps were probably prepared earlier, before the new administration of the National Bank was appointed, the economist believes. This policy will help restore the single exchange rate, Iosub said.

The increase of the official dollar exchange rate will allow Belarusian goods to be more competitive in the foreign market:

“If the wages and the prices in the domestic market are not increased to match the new exchange rate, our goods may become more competitive in the foreign market. However, it may result in the lack of some goods in the home market where the prices are strictly regulated.”

The government and National Bank imposed a 30% fee on the purchase of foreign currency on December 20. The administration of the National Bank has been replaced recently. Pavel Kalavur has been appointed to Nadzeya Yermakova’s position.

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