16.02.2012
Belarus to continue “managed float” of its currency in 2012
MINSK, 16 February (BelTA) – The National Bank will continue the “managed float” of the exchange rate in 2012, Deputy Chairman of the Board of the National Bank of Belarus Sergei Dubkov said at the international forum “Capital Market of Belarus. Challenges and Opportunities”.
“The National Bank will continue the ‘managed float’ of the exchange rate in 2012. This means that the exchange rate of the Belarusian ruble will be formed with minimum direct involvement on the part of the National Bank based on foreign currency supply/demand and under the influence of fundamental macroeconomic factors,” he said. The National Bank will carry out limited currency interventions exclusively to curb sharp fluctuations. As a result, the exchange rate will be maintained not by direct interventions by the National Bank, but through the measures of money-printing and interest rate policy, said Sergei Dubkov.
Speaking about the strategic tasks faced by the National Bank this year, he stressed the importance of maintaining the country’s international reserves at a level ensuring the economic security of the country. “The minimum task is to prevent a reduction in the reserves and maintain them at the level we had at the beginning of the year. Foreign direct investments in the country's economy that do not increase the debt burden should become the main sources of increasing the international reserves in 2012,” Sergei Dubkov noted.
In 2012, the National Bank will continue its tough policy and will do its best to avoid unscheduled emissions. Loans will be issued exclusively on market terms and for short terms using standard bank liquidity instruments. This is a necessary condition to achieve the price stability and the stability of the exchange rate of the Belarusian ruble. “Banks need to take this into account when implementing credit activities. In recent years, the banking system has been a major financial donor of the economy and ensured high volumes of lending,” Sergei Dubkov said. The projected volumes of lending are sufficient to support the economic activity of enterprises and the projected GDP growth, added the Deputy Head of the National Bank.
Credit resources will be channeled into the industry and the investment projects that are aimed at creating a high-tech, innovative or export product. “It is very important to create the necessary conditions so that the Development Bank should start operating at full capacity as soon as possible,” Sergei Dubkov added.
“The National Bank will continue the ‘managed float’ of the exchange rate in 2012. This means that the exchange rate of the Belarusian ruble will be formed with minimum direct involvement on the part of the National Bank based on foreign currency supply/demand and under the influence of fundamental macroeconomic factors,” he said. The National Bank will carry out limited currency interventions exclusively to curb sharp fluctuations. As a result, the exchange rate will be maintained not by direct interventions by the National Bank, but through the measures of money-printing and interest rate policy, said Sergei Dubkov.
Speaking about the strategic tasks faced by the National Bank this year, he stressed the importance of maintaining the country’s international reserves at a level ensuring the economic security of the country. “The minimum task is to prevent a reduction in the reserves and maintain them at the level we had at the beginning of the year. Foreign direct investments in the country's economy that do not increase the debt burden should become the main sources of increasing the international reserves in 2012,” Sergei Dubkov noted.
In 2012, the National Bank will continue its tough policy and will do its best to avoid unscheduled emissions. Loans will be issued exclusively on market terms and for short terms using standard bank liquidity instruments. This is a necessary condition to achieve the price stability and the stability of the exchange rate of the Belarusian ruble. “Banks need to take this into account when implementing credit activities. In recent years, the banking system has been a major financial donor of the economy and ensured high volumes of lending,” Sergei Dubkov said. The projected volumes of lending are sufficient to support the economic activity of enterprises and the projected GDP growth, added the Deputy Head of the National Bank.
Credit resources will be channeled into the industry and the investment projects that are aimed at creating a high-tech, innovative or export product. “It is very important to create the necessary conditions so that the Development Bank should start operating at full capacity as soon as possible,” Sergei Dubkov added.