Stanislau Bahdankevich: National Bank to be blamed for lack of foreign cash in exchange offices

The lack of foreign currency in exchange offices provokes distrust of both the government and the national currency.

It was a problem to get dollars and euros in Minsk yesterday. Five offices of commercial banks didn't have foreign cash. Exchange offices sell dollars and euros they previously bought from customers. Why did it happen?

Former head of the National Bank of Belarus Stanislau Bahdankevich says in an interview with Radio Racyja that the country's central bank is involved.

– I think it depends on the National Bank, which apparently doesn't sell foreign currency to commercial banks so that they cannot sell it to people. It is called administrative measures. I don't have other opinions. Commercial banks have non-cash foreign currency and can apply to the National Bank for a sum in cash for their exchange offices. But it does not happen. So, I have certain doubts. It may be so that foreign currency hasn't been delivered from abroad. It was said earlier that it would be delivered.

– The lack of foreign cash in exchange offices is not normal, is it?

– Of course, it's not normal. If they said it would be okay, but we still don't have foreign currency, it arouses distrust of both the government and the national currency. Moreover, it provokes additional panic buying of foreign currency. Measures in two directions are needed to stabilise the ruble rate. The first one is to restore trust of the Belarusian ruble through decreasing the inflation rate. The second measure is to revive the economy that has been in stagnation for several years. There's no growth. The government should cut taxes and interest rates and carry out other reforms to find resources for the economic recovery.

– Will devaluation processes continue in the country?

– They are likely to, but it will also depend on the measures that will be taken and implemented. We don't have a fall now, but the current events show that the situation on the financial market has not been stabilised yet. The main thing now is not the exchange rate, but the inflation rate. If we curb inflation, the exchange rate will stabilise and decrease. A matter of inflation is a matter of stability, because Belarusians get salaries in rubles, not in dollars.