MINSK, 6 August (BelTA) – New measures are being worked out to reduce the usage of foreign currencies in Belarus, BelTA learned from a recent interview of Chairman of the Board of the National Bank of the Republic of Belarus (NBRB) Pavel Kallaur with the Respublika newspaper.
The central bank and the central government have been taking measures for the last few years to reduce the usage of foreign currencies in Belarus as much as possible. The latest novelties include amendments to the Tax Code. The Tax Code no longer allows paying virtually any tax in foreign currency. Amendments to the Civil Code are in development. They will allow paying in foreign currencies only if the legislation allows it. There are plans to greatly limit the cases when foreign currencies can be used for domestic transactions while disallowing such transactions for individual companies.
According to Pavel Kallaur, it is necessary to stop giving foreign currency privileges to individual companies. The central bank and the Finance Ministry have agreed that the issue of bonds nominated in foreign currencies will be restricted on the domestic market for all corporations, including banks.
The head of Belarus' central bank pointed out that the use of foreign currencies must be restricted while relaxing foreign currency trade regulations. A number of steps has already been made. Individuals no longer have to present passports to buy or sell foreign currencies in banks. The purpose of buying foreign currencies no longer has to be specified. Other steps have been taken, too. “No doubt, a lot depends on psychology and the long-standing habit of measuring everything in U.S. dollars. While calculations in U.S. dollars were somehow justified due to high inflation in the past, now the national currency is stable. All the calculations and transactions have to be made in Belarusian rubles. Contracts should use Belarusian rubles, too. In the end it represents an important factor of stability of the financial system and the economy as a whole,” concluded Pavel Kallaur.
