MINSK, 26 April (BelTA) – Monetary and financial stability was secured in Belarus in Q1 2018. The dynamics of inflation processes was within the forecast scope. The relevant matters were discussed during the expanded-participation session of the Board of the National Bank of the Republic of Belarus (NBRB) held on 26 April to discuss results of implementation of the monetary management policy in Q1 2018, representatives of the NBRB Information and Public Relations Office told BelTA.
In March 2018 inflation totaled 5.4% year-on-year while the target stands at 6% at most. A certain acceleration of inflation processes — 4.6% year-on-year in December 2017 — is attributed primarily to an increase in administratively regulated prices and rates.
In Q1 2018 Belarus' financial sector remained stable with regard to major risks. Stable and uninterrupted operation of the payment system was secured.
Commercial banks and the Development Bank of the Republic of Belarus (DBRB) fulfilled safe operation requirements. The insurance industry and other financial mediators kept working steadily.
Belarus repaid considerable amounts of foreign currency commitments. The structure of the gold and foreign exchange reserves improved while their actual size dropped a bit.
Participants of the session discussed matters concerning potential risks to the country's financial stability arising from the current geopolitical situation. They also talked over the diversification of foreign capital flowing into the country, the joint work of all the authorized government agencies for the sake of reducing inflation and devaluation expectations of commercial entities and reducing credit risks in the economy.
In particular, it was noted that methods to determine sources of credit risks and evaluate the risks were improved in Belarus as of 1 April 2018 as well as approaches to debt classification and the accumulation of special reserves for compensating for losses. In a move towards international standards the National Bank of the Republic of Belarus started using the indicator “non-performing assets” instead of the troubled assets indicator previously used in the country.
In the future the central bank will continue implementing a balanced monetary policy aimed at reaching medium-term inflation goals and supporting balanced incentives for economic growth, noted the source.
