Catastrophe: Dollar goes up every hour

By the afternoon the Belarusian ruble plummeted to 8000 to 1 US dollar at the over-the-counter market.

Interfax-Zapad agency has been informed about that by the leader of one of the large private companies.

“On Wednesday the Belarusian ruble continued falling at the over-the-counter market – in the afternoon it was about 8,000 Br pr $1 as compared to Br 7,600 per $1 today morning. Yesterday evening the exchange rate at this segment of the market was Br 7,500 per $1,” said a representative of the import company.

As said by him, “sporadic transactions are made at the market, as a rule, in “bank-client” segment, or by agreement between enterprises.”

This current exchange rate has been confirmed to the agency by one of the largest commercial banks. “Now the bank’s quotation rate for cashless dollars is Br 7,800 per $1, but they are not sold in fact. There is no currency. Yesterday there were transactions at Br 7,800/$1,” the representative of the bank said.

The head of the company said to the agency: “Business community is expecting a package of appropriate anti-crisis measures from the authorities. Their absence makes the situation in the currency and financial market unmanageable, and creates a risk of hyper-inflation.”

Voicing the expectations of the business community, the interlocutor spoke about the program of action expected from the government: “Firstly, the authorities should hold foreign currency free market trading on the exchange in order to return to one exchange rate. Secondly, a large-scale privatization should be held in order to support reserves. Thirdly, financing of inappropriate state programs should be stopped. Fourthly, a legislative mechanism for participation of business representatives in economic management should be created. Fifthly, a social safety net appropriate for the current situation should be created, including increase of unemployment allowance and the norm of minimum consumer budget. All that should be done in package.”

According to him, considering the yesterday’s statements of the representatives of Russian government, “it is clear that this year Belarus is to receive only $1 billion of loans. If the existing economic model would be preserved, such sum is to be needed monthly.”

He underlined that “the objective criterion of effectiveness of the steps made by the authorities is presence of foreign currency in the market and stability of the exchange rate on the market.” “So far the reality proves to be opposite, despite the self-hypnosis the authorities are indulged in,” the chief of the enterprise stated.

The official exchange rate of the Belarusian ruble as of May 19 is Br 3,130/$1.