National Bank of Belarus builds up gold and foreign currency reserves
MINSK, 19 November (BelTA) – In January-October 2009, the Major Monetary Management Guidelines were fulfilled, Chairman of the Board of the National Bank of the Republic of Belarus (NBRB) Piotr Prokopovich told President of Belarus Alexander Lukashenko on 19 November, BelTA learnt from the presidential press service.
The Belarusian ruble exchange rate against the basket of foreign currencies remains within plus/minus 10% band.
Over the last years, the National Bank of Belarus has considerably increased gold and foreign currency reserves. In January-October 2009, international reserve assets of Belarus calculated in accordance with the IMF methods, increased more than 1.4 times – from $3.1 billion as of 1 January to $4.43 billion as of 1 November. By 1 January 2010, they are expected to reach $5 billion which will create a good basis for securing the stability of the national currency.
The President was informed that the MF mission completed its work in Belarus to survey Belarus’ performance under the SBA. As of 1 October 2009 the National Bank implemented all necessary measures to secure successful fulfillment of the Stand-By Arrangement. The IMF Executive Board will soon review the results of the work. “We are confident that another tranche of the IMF loan will be transferred in December,” said Piotr Prokopovich. This will improve the situation in the country, including the one with the gold and foreign currency reserves.
The banking system provides the necessary amount of financing to the national economy.
The National Bank is working on improving the interest rate policy. “We have reached an agreement on the IMF that we can start reducing the refinancing rate. We plan to reduce the rate of refinancing by 0.5% to 13.5% per annum on 1 December,” Piotr Prokopovich said. He also assured that in H1 2010 the interest rates on the Belarusian market will reduce to the pre-crisis level.
The President tasked the National Bank with doing its best to fulfill this year’s Major Monetary Management Guidelines and said he would like the NBRB and the government to finish working out the draft forecast for Belarus’ social and economic development in 2010 soon along with the budget bill and the draft Major Monetary Management Guidelines. Piotr Prokopovich remarked that the President’s instructions regarding these documents had been fulfilled and the documents will be forwarded for consideration of the head of state by 23 November at the latest. The final decision on the documents is supposed to be made next week. “It is very important for us to receive the next year’s social and economic development forecast as well as the Major Monetary Management Guidelines in order to start working on fulfilling them as soon as possible,” said the NBRB head.
The documents are supposed to lay down figures to secure the fulfillment of the five-year program on the social and economic development of Belarus in 2006-2010. In particular, in 2010 Belarus’ GDP is supposed to increase by at least 11% while inflation is meant to stay at 8-10%.
