NBRB: Refinancing rate will play a bigger role in Belarus in 2013

MINSK, 13 December (BelTA) – In 2013 Belarus will increase the role of the refinancing rate as a reference point determining the cost of financial resources and the interest rate of overnight interbank loans, and ultimately the interest rate of loans and deposits. This statement was made at a session of the Advisory Board of the National Bank of the Republic of Belarus (NBRB) on 12 December, BelTA learnt from the information and public relations department of the National Bank.

The Advisory Board is chaired by Chairperson of the Board of the National Bank Nadezhda Yermakova. The session of the Advisory Board discussed ways to streamline mechanisms to implement the monetary policy in 2013.

The participants of the session noted that the 2013 monetary policy will focus on reducing the inflation rate. “Maintaining the purchasing power of the national currency is essential for sustainable economic development of the country and improving the living standards of people. For this purpose, the National Bank will employ all its instruments backed by the economic policy of the Belarusian government,” the National Bank said.

The managed float regime will be one of the major instruments of the monetary policy of the National Bank. “The NBRB will keep gradually reducing its presence on the currency market and making interventions only to mitigate sharp market fluctuations of the currency exchange rate. The medium-term changes in the currency exchange rate should be determined by fundamental factors,” the National Bank underlined.

With a view to maintaining the economic security of the country, fulfilling international obligations and boosting trust in the official policy, the National Bank will increase gold and foreign exchange reserves, Nadezhda Yermakova said.

The participants of the session of the Advisory Board emphasized the need for active cooperation with the Anticrisis Fund of the Eurasian Development Bank and the International Monetary Fund. “Successful cooperation with international organizations will allow working out a joint stabilization policy and receiving loans. More than that, it will help considerably enhance the investment appeal of the country,” the National Bank said.

Top on the agenda of the session was a possibility to set up a banking venture fund to finance innovative projects in Belarus. The experts discussed the international experience in using macroprudential policies and the participation of central banks in these policies.

The Advisory Board is a consultative body providing expert, information and advisory services to the National Bank for developing and implementing a monetary policy. The board also consults on the operation of banking and payment systems. Taking part in the session on 12 December were reputable scientists, MPs, and businessmen, representatives of the Finance Ministry, Association of Belarusian Banks, Economy Ministry, heads of a number of Belarusian banks, independent experts and members of the National Bank.