Bahdankevich: “More rapid devaluation of ruble is needed”

Devaluation of Belarusian ruble should be more rapid, former board chairman of the National Bank thinks.

“In my view, policy of the National Bank on rather gradual devaluation of national currency is right. Another thing it should be more rapid,” the expert told to BelaPAN.

S. Bahdankevich thinks it is possible to keep Belarusian ruble rate at it was planned. “But what concerns the next year, it is a rather problem issue,” he noted.

The former head of the National Bank explained that devaluation of ruble is caused by “huge deficit” of balance of trade of Belarus that is still growing. “So, if I were National Bank head, I wouldn’t make a categorical forecast on exchange rate at the end of the next year. Trade balance deficit was growing before the crisis and will grow in future,” S. Bahdankevich noted.

According to him, demand for foreign currency exceeds opportunities of the country, but foreign loans can decrease this demand in some degree and perform planned devaluation. “But I don’t think we should carry out complete devaluation. If I were responsible for this, I would be very careful with this question in order not to fear people,” the former head of the National Bank said.

He noted that devaluation of national currency creates good conditions for export and bad ones for import for enterprises.

S. Bahdankevich believes that administrative methods in economy, including current import restrictions and currency selling on stock exchange, are a deadlock.