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NBRB to restrict money printing in 2012

MINSK, 30 January (BelTA) – The National Bank of the Republic of Belarus (NBRB) will restrict money printing in 2012, Chairperson of the Board of the National Bank of Belarus Nadezhda Yermakova told reporters on 30 January, BelTA has learnt.

The banks will be refinanced solely on market terms, for a short period and only using standard instruments of liquidity management. “If needed, we will do sterilization operations to prevent excessive money growth in the economy,” Nadezhda Yermakova emphasized.

The interest rate policy of the National Bank will aim to achieve the positive level of real interest rates in the economy. The policy should be well-considered, it should secure monetary stability and maintain balanced economic growth, the chief of the National Bank said. The interests of both borrowers and depositors should be taken into consideration. Only in this case Belarus will be able to create an environment conducive to economic growth and well-being of people.

The major preconditions for stable economic growth in the medium-term and long-term perspectives are low inflation and stable exchange rate of the national currency. “Our goal is to reduce the consumer price growth to 19-22% in 2012. The success of the efforts will in many ways depend on the efficiency of the economy and toughness of the monetary and fiscal policy,” Nadezhda Yermakova said.

This year the National Bank and the government will keep increasing gold and foreign currency reserves to the level guaranteeing the economic security of the country. By the end of the year the amount of gold and foreign currency reserves should be the same as at the beginning of the year. As of 1 January 2012, international reserve assets made $7.9 billion.