Minsk hotels ready for devaluation

Devaluation expectations in Minsk remain high.

Fluctuations in the Belarusian currency market significantly grew last week. A week ago, the official exchange rate of the dollar was 8,500 rubles, then 8,410, 8,520 and at last 8,570 rubles per 1 dollar on Friday. A high volatility in the euro currency was observed: the official exchange rate of the euro was 10,990 rubles a week ago. The exchange rate was 10,820 on the next day to grow to 10,990 again and reach 11,140 rubles at the end of the week.

Exchange rate fluctuations didn't go unnoticed for the corporate sector. Crowne Plaza Minsk Hotel informed its clients by mail on Friday morning, October 5, about “the new euro exchange rate, which will be used to pay for accommodation, breakfasts and rental of conference halls”.

“The new exchange rate will be 1 EUR = 12 000 BYR. The new rate will be used for rental of conference halls from October 8, 2012, for breakfasts – from October 15, 2012,” the hotel informed in the notification, BelaPAN news agency reports.

The hotel has not changed the internal exchange rate since late January keeping it at 11,000 rubles per 1 euro. Hotel managers explain this measure is caused by “the increase in the exchange rate set by the National Bank”.

The step by the 5-star hotel may create a precedent when Minsk hotels will begin to set internal exchange rates significantly higher the official one. However, Crowne Plaza Minsk later refused to raise the internal rate. After a corespondent asked the hotel top managers to give an official comment on the internal exchange rate increase, clients received another letter from the administration of Crowne Plaza Minsk on the evening of October 5 asking to ignore the previous note relating to the exchange rate increase. The hotel informed the internal exchange rate remained  1 EUR = 11 000 BYR.

The story with internal rate change may show that some hotel business representatives have devaluation expectations making them change the internal exchange rate.