National Bank doesn’t believe stability of the ruble anymore

The fluctuation band has been extended to 10%. Experts forecast 60% fall of the ruble.

“The National Bank made a conclusion that fluctuation of the Belarusian ruble against the currency basket should be extended from +/-5% to +/-10%. The fluctuation range is now from 864 to 1056 rubles, the limits were extended by 48 rubles in the both sides. The Board of Directors of the National Bank adopted the decision on June 22, 2009,” Interfax quotes a press release of the National Bank.

The National Bank explained the decision by the fact that “despite certain signs of stabilization the economies of some countries, development of the global economy is still uncertain and risks in the foreign economic environments are still possible. The world currencies are instable.”

“Expanding the band will create a spare capacity for more flexible reaction of the exchange policy if additional unfavourable factors appear,” the press release says.

According to financial analysts, the Belarusian national currency will inevitably repeat the destiny of the hryvnia and the Russian ruble. Experts note that the National Bank of Belarus devalued the ruble by more than 30% in January–February, but it is miserable reserves don’t allow saying that the ruble fall will stop. Analysts state that the international reserves of the National Bank cover less than two months of future imports instead of three or four ones.