OREANDA-NEWS. The National Bank of the Republic of Belarus took a number of measures in the field of monetary policy with a view to further stabilizing the situation in the monetary sphere.

Taking into account the annulment of the tax for stock exchange operations involving the purchasing of foreign exchange (Resolution of the Council of Ministers of the Republic of Belarus No. 5 dated January 6, 2015), the Board of the National Bank took a decision on the abolishment of the commission charged upon purchasing of foreign exchange by households.

This measure is aimed at unifying the purchase/sale exchange rates in different segments of the foreign exchange market, including the banks’ exchange offices, and bringing them closer to the official exchange rate of the Belarusian ruble, which, as at January 8, 2015, totaled BYR13,760 for USD1 at the trades of the Belarusian Currency and Stock Exchange.

On January 9, 2015, the National Bank resumes the mechanism of pegging the Belarusian ruble to the foreign currency basket. At that, the share of the Russian ruble in the basket’s structure grew to 40%, with the shares of the euro and the US dollar decreasing to 30%.

The approaches to the use of foreign exchange reserves to support the exchange rate are tightened within the new mechanism. Foreign exchange interventions will be carried out for the purpose of smoothing the drastic fluctuations of the foreign currency basket value in the volumes ensuring the positive balance of foreign exchange purchase/sale by the National Bank in the medium-term period.

The Belarusian ruble exchange rate will fluctuate versus each currency (the US dollar, the euro, and the Russian ruble) due to the change in the basket’s value caused by the foreign exchange demand and supply at the stock exchange trades, as well as mutual changes of the cross rates of this foreign currencies. At that, the exchange rate may change in both directions.

The implementation of the above-mentioned exchange rate setting mechanism will make it possible to manage the national currency exchange rate versus foreign currencies being of primary importance for foreign economic activities of the Republic of Belarus more effectively and increase resistance of the Belarusian economy to the impact of external factors.

The measures of the economic, fiscal, and monetary policies will be used with a view to maintaining relative stability of the Belarusian ruble exchange rate.

Besides, the National Bank took a number of decisions in the monetary policy area, which are designed to establish the interest rate level in the economy ensuring financial and macroeconomic stability, slowing-down of inflation, and balance of the depositors’ and borrowers’ interests.

Thus, on January 9, 2015, the refinance rate will be increased by 5 percentage points and amount to 25% per annum. On January 14, 2015, the interest rates on standing facilities and bilateral operations designed to maintain liquidity will be decreased from 50% to 40% per annum. The rate on the overnight deposits will be raised to 20% per annum.

At the same time, on January 9, 2015 the ceiling of interest rates on the legal persons’ deposits will be decreased from 50% to 40% per annum. The ceiling on the natural persons’ ruble deposits will be preserved at the level of 50%, but it will be also decreased as the situation further stabilizes.

With a view to mitigating the negative impact of the drop in the exchange rate on the banks’ liquidity, the ratio of required reserves deposited with the National Bank (reserve requirements) of the attracted foreign exchange will be decreased in January 2015 from 13% to 12.5% and in February 2015 – to 10%. This measure will make it possible to support the stable functioning of banks under the conditions of the lack of ruble funds which appeared in December 2014.

In future, the National Bank and the Government will continue to take consecutive measures designed to increase macroeconomic well-balance and strengthen stability in the financial and foreign exchange markets of the country.