The National Bank devaluates ruble

The authorities abandon the administrative exchange rate formation.

On January 9 the National Bank of the Republic of Belarus in the Belarusian Currency and Stock Exchange predicts to retie the value of Belarusian ruble to the currency basket (dollar-euro-Russian ruble), where the share of the Russian ruble will reach 40% (dollar and euro 30%), AFN reports.

“Starting from January 9, 2015 the National Bank reties the value of Belarusian ruble to the currency basket. At the same time the share of the Russian ruble raises to 40%, and the share of dollar and euro falls to 30% respectively”, the regulator’s statement says.

Meanwhile the National Bank makes a promise to preserve international reserves using interventions only as a last resort.

“Currency interventions will be exercised only to smooth hard currency basket fluctuations within the limits providing currency purchase and sale surplus by the National Bank in the mid-term.”, the regulator believes.

The National Bank told before that it managed the rate only to smooth the fluctuations. But everybody knows what has been for real.

The regulator believes that it will be possible “to control the national currency rate more effectively” and “to improve the robustness of Belarusian economy to external factors”.

Nevertheless, another wonder-working National Bank’s package of measures raises reasonable doubts. Every pioneer understands that the Belarusian ruble depends entirely on the level of generation of currency to the country and printing press power, operating, as a rule, at full capacity before another presidential campaign.

Photo: AP