On Tuesday (today), Belarusians will suddenly find that the money they’re holding is worth a lot less than it was the day before. More than a third will be shaved off the value of their rubles. The nation’s central bank has devalued the country’s currency by 36 percent, provoking chaos in its financial markets. Some banks are now suffering from foreign currency shortages and that’s just the beginning. The new exchange rate of 4930 Belarus rubles to the dollar becomes official on Tuesday, compared with 3155 rubles to the dollar Monday. Belarus National Bank also said it will only allow the ruble to be traded within a band of 12 percent above and below the average exchange rate of a basket of currencies, consisting of dollars, rubles and euros. This policy has prompted local banks to raise their exchange rates. And now many are being hit by foreign currency shortages. “Are there any US dollars here? When can I buy them?” “No one right now has US dollars.” The foreign currency shortage has pushed the exchange rate on the black market as high as 9000 Belarus rubles per one US dollar. The exchange rate chaos has hit the profits of local businesses hard. Minsk Vendors said “We need foreign currency to pay our import fees and taxes. And now we can’t import goods anymore because of the foreign currency shortages. We have no choice but to wait overnight outside the bank.” Economists say that the country’s long-standing trade deficit and massive issuance of Belarus rubles are major …
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