Bahdankevich: Denomination To Create Many Problems For Belarusians

The authorities could desire to convert into new rubles dollars and euros at bank accounts.

What Belarusians should expect from denomination? Are there any undercurrents the public is unaware of?

The former head of the National Bank Stanislau Bahdankevich answers questions of Belaruskaya Prauda.

– Most of the people do not know what denomination is.

And every transition from one scale of calculation always causes difficulties of adaptation.

It was a long overdue necessity to carry out denomination – there are so many unnecessary zeroes! – but the transition period could turn out to be not so easy for people.

– What advantages does elimination of zeroes give?

– There will be less paper in a purse, there would be kapejkas, coins, we would be able to count the GDP with the help of computers, otherwise new ones should be invented, for all zeroes to be counted. The Belarusian ruble is to approach real value of reserve currencies: euro and dollar. The advantages are of a purely technical nature.

– The authorities planned to carry out denomination since January 1, 2017, however rescheduled it for half a year earlier. Why?

– I do not see any pitfalls: people are just easily frightened by everything now. One should fear dollars and euro conversion in the national currency for the sake of de-dollarization.

– Is it possible?

– It is unreal today, but in case the situation with foreign currency, inflation, exchange rate in the country would be really bad, such move could be quite possible. For example, you have 10,000 Euros on your bank deposit, they would be converted according to the exchange rate, and after that you have only rubles. There are many variants of the national currency strengthening, but I hope that the Belarusian authorities would not use them. Inflation in Belarus is quite acceptable – no more than 20% a year, it is expected to be 12% in 2016.

I do not think that rejection to use foreign currency is timely now, but it is possible.