OREANDA-NEWS. September 23, 2010. President Alexander Lukashenko met with the Chairman of the Board of the National Bank of Belarus, Pyotr Prokopovich, who briefed the Head of State on the results of implementing the national monetary and credit policy in January-August 2010.

In January-August Belarus has met all the main monetary and credit policy targets set for this period. The rate of the national currency against the currency basket has remained stable; lending to state-owned and private businesses is growing; the interest rate policy is in line with the country’s main monetary policy document, the Basic Guidelines of the Monetary and Credit Policy of Belarus; the payment system functions effectively and efficiently; all this creates a foundation for a sustainable development of the Belarusian economy.

The exchange rate of the Belarusian rouble against the currency basket in January-August 2010 fell by merely 0.29 per cent, whereas the forecast for the year is +/- 10 per cent.

‘The stability of our national currency, the stability of the exchange rate policy are based not only on the efficiency of our economy but also on that we have enough of gold and hard currency reserves,’ said Pyotr Prokopovich. As of the 1st of September, the gold and hard currency reserves of Belarus amounted to USD6.055 billion, up 1.7 times from the beginning of last year. The Chairman of the Board of the National Bank has explained that the growth in the gold and hard currency reserves has been fuelled by a rise in the hard currency revenues earned by Belarusian companies, which this year has risen by more than 20 per cent, or USD 2.5 billion, from the previous year. Pyotr Prokopovich has assured the President that the plans to increase the reserves will continue to be fulfilled. This year, in accordance with the Basic Guidelines of the Monetary and Credit Policy, the reserves are expected to increase by USD 0.5 billion to USD 1.8 billion.

The National Bank has also worked hard to reduce bank interest rates. For instance, the refinancing rate has been reduced a total of 6 times this year already. Since the 15th of September it has been 10.5 per cent per annum. Accordingly, the interest rates of bank loans have been falling too.

Alexander Lukashenko has ordered the National Bank to continue ensuring stability of the nation’s banking sector, including the situation in the hard currency market, interest rate policy and lending. The President has emphasised the need for seeking opportunities to reduce further the interest rates on loans for the population.