MINSK, 19 March (BelTA) – The National Bank of the Republic of Belarus (NBRB) has released a statement in response to the situation on the country's financial market, BelTA has learned.
The statement reads: “The volatility of global financial markets increased considerably in the last few days. In these conditions the demand for foreign currency on Belarus' domestic forex market has increased. It affected the dynamics of the exchange rate of the Belarusian ruble against foreign currencies. In order to curb risks to financial stability relating to the increased volatility of the exchange rate the central bank has carried out more currency interventions.”
On the whole, the central bank follows a floating exchange rate policy, which allows limited volumes of currency interventions in order to smooth out acute fluctuations of the currency exchange rate.
The central bank will continue monitoring the situation and will respond fast if necessary.
In order to enhance the ability of commercial banks to continue offering financial support to the real sector of the economy, the NBRB Board has authorized countercyclical measures, in particular, a number of prudential requirements have been relaxed.
Apart from that, the central bank has decided to temporarily suspend the enforcement of standard risk rates on depository tools and raise the allowed level of risks for calculating standard risk rates on credit tools. The decision was prompted by the central bank's desire to give commercial banks more leeway for responding to market changes.
Due to the coronavirus situation and bans on the entry of foreigners international air carriers have considerably reduced the number of flights, making freight transportation between countries difficult.
“This is why European banks and financial organizations that sell U.S. dollars as cash on the European market are having problems with delivering cash from the USA. It has resulted in a shortage of U.S. dollar cash in countries of the region fueled by an increased demand for U.S. dollars on the back of highly volatile global financial markets,” NBRB representatives said.
This is why a temporary shortage of cash dollars may be seen in exchange offices and bank branches in Belarus. Meanwhile, there are no limits on buying or selling non-cash U.S. dollars. Apart from that, Belarusian banks have sufficient amounts of other currencies to offer in cash, for instance, euros.
“In the current conditions the Belarusian banking system will take the necessary measures to offer the entire range of banking services to individuals and corporations in a timely and proper manner,” the NBRB stressed.
