National Bank’s policy may lead to most serious consequences.
The chairman of the board of Belgazprombank Viktar Babaryka supposes that National Bank of Belarus will be unable of to carry out for long the tough support of the Belarusian rouble’s exchange rate in the conditions, when national currencies are devaluating in neighboring countries.
“Our environment – the market that we are interested in – devaluation of currencies is taking place there. Albeit smooth, but it exists. Ukraine, Kazakhstan and Russia made moves to decrease the value of their currencies. We, all the economists, understand that there can be no tough support of the exchange rate”, - Babaryka said at a press-conference in Minsk on Wednesday.
He pointed out that any actions of the National Bank aimed at smoothly devaluate the rouble will lead to the increased demand for foreign currencies on the part of the population and the growth of interest rates on loans, including for business, Interfax reports.
According to Babaryka, the instability of the situation in the economy of the country and downslide at the markets of the neighboring countries force Belarusian authorities to take short-term situational measures. “We cannot yet see balance, a formulated strategy and understanding of which direction to take. This is not our disaster, this is our joint problem”, - he said.
Babaryka emphasized that in such a situation the authorities and the National Bank should have serious instruments for managing risks. “We can see the risk of the preservation of tough, but socially oriented behavior. The attempt to keep such social orientation – unjustified pensions increase, increased state support to unprofitable sectors of the economy – may lead to most serious consequences”, - he claimed.
At the same time the head of Belgazprombank admitted that Belarusian authorities are trying to put the economic situation in order.