MINSK, 19 December (BelTA) - The latest episode of the documentary series Time Chose Us aired by the Belarus 1 TV channel addressed the topic of the Belarusian ruble depreciation and the thriving currency black market in 2000, BelTA has learned.
In 2000, Belarusians suddenly became millionaires, but nobody was happy about this state of affairs. The Belarusian ruble depreciated. To understand the scale of inflation: Br1 million was worth a little more than $9. To simplify settlements and stabilize the national currency, government decided to redenominate the currency - Belarusian banknotes shed three zeros. The new and old money were in simultaneous circulation for a year.
At the same time, the government decided to root out the speculations with currency exchange. It was, to put it mildly, problematic to buy dollars in a bank. Only 30% of what the population sold was available for purchase. A large amount of counterfeit currency was in circulation. The government managed to reverse the situation by allowing commercial banks to set a market rate.
Nikolai Luzgin, who was Deputy Chairman of the Board of the National Bank of Belarus in 1998-2013, recalled that there were quite a lot of illegal currency dealers then.
It took a while to deal with the currency dealers. In 2011, the dollar exchange rate jumped sharply, and people actively bought currency on the black market. However, over time, the authorities were able to regulate this situation, and now hand-to-hand currency trading is a thing of the past.
There were three redenomination campaigns in Belarus: in 1994, 2000 and 2016. The last redenomination introduced kopecks , which happened in the history of sovereign Belarus for the first time. Kopecks are still in use in the country today.
At the same time, the government decided to root out the speculations with currency exchange. It was, to put it mildly, problematic to buy dollars in a bank. Only 30% of what the population sold was available for purchase. A large amount of counterfeit currency was in circulation. The government managed to reverse the situation by allowing commercial banks to set a market rate.
Nikolai Luzgin, who was Deputy Chairman of the Board of the National Bank of Belarus in 1998-2013, recalled that there were quite a lot of illegal currency dealers then.
“There was a parallel process going on. Both banks were engaged in currency operations and also illegal currency dealers were doing it. Until the fx market was regulated, there were differences in fx rates and people were looking for better deals,” Nikolai Luzgin said.
It took a while to deal with the currency dealers. In 2011, the dollar exchange rate jumped sharply, and people actively bought currency on the black market. However, over time, the authorities were able to regulate this situation, and now hand-to-hand currency trading is a thing of the past.
There were three redenomination campaigns in Belarus: in 1994, 2000 and 2016. The last redenomination introduced kopecks , which happened in the history of sovereign Belarus for the first time. Kopecks are still in use in the country today.
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