Stanislau Bahdankevich: Hryvnia devaluation to hit Belarusian export
12:40, — Economics
The devaluation of national currencies of Belarus's neighbourings harms the country's economy.
Stanislau Bahdankevich, a former head of the National Bank of Belarus, talked to charter97.org about 9% devaluation of the Ukrainian hryvnia.
“I think a 9% fall is not a big one. The Belarusian ruble was devalued by almost 11% past year and the Russian ruble has fallen recently. The trade uses mainly the dollar and the euro rather than national currencies. I don't think it will bring big problems,” the economist says.
The expert notes the devaluation of national currencies of neighbouring countries harms Belarus's economy theoretically, because the export and import decline.
“The import from Ukraine will be cheaper, while the export to Ukraine will rise in price. The balance between the export and import won't be to our benefit. It may happen theoretically. In general, if, for example, Russia devalues its currency, Belarus should devalues its currency too. If the Ukrainian currency fells, we should do the same. Things are interdependent,” Stanislau Bahdankevich said.
On February 7, the National Bank of Ukraine set the official hryvnia exchange rate at 8.708 per dollar. The previous hryvnia exchange rate of 7.993 per dollar was kept since July 9, 2012.