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"D" Day

71

Today is the third denomination in the history of Belarus.

Earlier, denominations were taken in 1994 and 2000, when Belarusian currency lost three zeros.

This time it is of a greater scale, now the currency misses four zeros. The reduction of the nominal value of banknotes equals to 10 000 times, thus not only banknotes, but coins are put into circulation - this is the first time in the history of modern Belarus. The Belarusians can recall the "coin period" only because of the Soviet times.

How does new money look like?

There are seven banknotes - 5, 10, 20, 100, 200 and 500 rubles - and eight coins - 1, 2, 5, 10, 20, 50 pennies and 1 and 2 rubles - are put into circulation.

Every banknote reflects on of the region of the country and the capital. The head pictures the official coat of arms, the reverse - the figure which identifies the nominal value.

How not to get lost in calculations?

If some goods cost Br10 000 then now they cost Br1. If the price tag was Br 100 000, now it equals to Br10. Current 100 rubles will make up 1 penny.

By the end of the year, until and including 31 December 2016, all business entities are required to indicate two prices - the old and the new one.

In view of the denomination all wages, pensions, maintenance allowances and benefits will be counted again.

Problems the Denomination Raises

Problems with ATMs, payments and work of banks. By the evening of June 30 the majority of operations in connection with the denomination are not available, and many services and agencies warn about failures in virtual payments. The charter97.org provided with a detailed work of all banks, as well as information about the work of Beltelecom, Belposhta, SSIS, the Belarusian Railway, fuel filling stations and other businesses which provide services.

New prices. There is a mess. Some stores already took price tags in rubles and pennies a few weeks ago (the price in tens and hundreds of thousands are written in small numbers), it troubled clients. Psychologically, the cost in Br2.4 is seen as 2400 of "old" rubles. In fact it is Br24 thousand. So be careful and do not be lazy to recalculate the new rubles in old ones. Otherwise, you can quickly run out of money.

Possible devaluation. Psychology is here again. No matter how many times the government claims that the denomination is just a technical process (it is true), the rise of dollar by 3-4 pennies will be taken not as negative as by Br300-400. However, it's all the same.

Expert: Inflation to "Eat" Belarusian Pennies in a Moment

Economist Leanid Zlotnikau said that the denomination in Belarus had had to be taken long ago, but the government had been waiting for the inflation reduction. It will not occur in the near future. The expert also believes that pennies will "fall into oblivion soon".

"The state of the economy is that that unless the new model is accepted the depreciation of the national currency will continue and life will be more expensive," he noted.

He believes that it has been useless to issue coins. Because of the inflation they have already depreciated. After a while they will be taken out of the circulation.

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