IMF suggests floating exchange rate to Belarus

MINSK, 13 June (BelTA) – The International Monetary Fund suggests that Belarus should use a floating exchange rate, head of the IMF mission in Belarus Chris Jarvis told media on 13 June. Chris Jarvis said that there is a lack of certainty on the Belarusian currency market regarding the level the exchange rate of the Belarusian ruble can get stable. The IMF representative believes that stabilization can be reached via transition to a floating exchange rate. He added: “We are not making any forecasts regarding exchange rate figures”. Speaking about interventions by the National Bank of the Republic of Belarus (NBRB), the IMF representative said that the NBRB did the right thing when it stopped interventions in March. “It would be a mistake to resume interventions to support any exchange rate figures,” said Chris Jarvis. “We believe that a floating exchange rate is better than a fixed one. We don’t rule out any interventions by the National Bank for the sake of smoothing out large exchange rate fluctuations,” stressed the head of the IMF mission in Belarus. Chris Jarvis believes that the current multitude of exchange rates in Belarus leads to all kinds of economic distortions. Chris Jarvis also said that the floating exchange rate will work if the NBRB toughens its monetary management, raises interest rates and if the government chooses a leaner taxation and spending policy. He added it was extremely important to implement all of it. It is vital for all interested authorities to coordinate their actions.

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