Stanislau Bahdankevich On Redenomination: I Do Not Exclude Public Panics
16- 9.11.2015, 17:19
- 27,170
Belarus has already become a “champion” of Europe in price hikes.
The former chairman of the National Bank of Belarus Stanislau Bahdankevich in his interview to Radio Racyja predicts how Belarusians are to take another redenomination, planned by the Belarusian authorities:
- Let’s admit that many our people are not educated in the field of finances. For example, one person called me from Maladzechna and asked to explain what redenomination is. That is why I do not exclude a moderate panic among the public. Though there is enough time until July 1, 2016 to carry out an outreach campaign. I think that prices for all goods in shops are to be written in advance in the old and new manner, for people to get used to prices gradually. On the other hand, our citizen can get used to anything.
- Is it possible that some people will try to withdraw deposits before denomination and convert them into foreign currency in an attempt to save themselves from a possible risk?
- I do not know how people are going to take the situation, but I believe that as soon as a sensible explanation of redenomination’s meaning is presented, people are to put their minds at rest. But I have not seen such an informational campaign to be launched on TV so far. In our country it is always held in a little bit different way, not as it should be.
- Some people are of an opinion that prices for a number of goods could be increased during redenomination. Could it happen?
- We have already become champions of price increase in Europe. So prices have been growing, are growing and are going to grow, until profound reforms in changing the management of the economic system are held. And the authorities are not going to agree to reforms yet. It means prices are to rise. And in the worst case scenario redenomination could contribute to prices rising by 1%. It is nothing as compared to the annual rise in prices by 20%. And in 2012 – by as many as 108%! And it happened without any redenomination.
