News & Events in Belarus

BARANOVICHI, 27 August (BelTA) – The exchange rate of the national currency will not be artificially restrained in Belarus. Belarus President Alexander Lukashenko made the statement as he visited the Baranovichi-based cotton industrial group and talked to the company’s personnel on 27 August, BelTA has learned.

The head of state said: “We are not going to artificially restrain the exchange rate of the national currency against other currencies. And we are not doing it right now. If we try to restrain it in an attempt to keep down inflation and help someone (times are different now), we will be forced once again to devalue the national currency by 30% in one go.” This is why the floating exchange rate policy is pursued in Belarus, Alexander Lukashenko stressed.

“What Kazakhstan and Russia have done just now we did earlier to avoid burning through the gold and foreign exchange reserves. It is good that gold prices are on the rise since we have about 30 tonnes of gold or so,” noted the President. “This is why we stick to the floating rate policy to go through these difficult times.”

Yet Alexander Lukashenko pointed out that prices should not be suppressed in this situation. “We keep an eye on prices. If we try to keep them down, the market supply will drop.”

“Yes, there is some volatility, some movement,” noted the President. “I swear to you that we are doing nothing to restrain or bolster or weaken the national currency. If more foreign currency is available, the exchange rate will be lower. If the demand is high, then foreign currency will be in short supply, you know what will happen.” Alexander Lukashenko stressed that bearing this in mind he urges to export more for the sake of increasing the flow of foreign currency into the country.