BELARUS NEWS AND ANALYSIS

DATE:

22/11/2006

Belarus' CB expects real effective exchange rate to drop 1%-2% in 2006

MOSCOW. Nov 22 (Interfax) - The National Bank of Belarus is forecasting that the real effective exchange rate of the Belarussian ruble against the basket of currencies of its major trading partners will drop an average of 1%-2% in 2006, a source in the National Bank told Interfax.

National Bank experts said this will create additional prerequisites to increase the price competitiveness of Belarussian goods on the domestic and foreign markets.

In its monetary and credit policy for 2006 the National Bank set the upper limit for the strengthening of the real effective exchange rate at 4%. The Bank said a strengthening in the exchange rate to this level will not threaten foreign trade and economic growth.

In its draft forecast for 2007, the National Bank sets an upper limit of 4%.

The real exchange rate of the Belarussian ruble against the Russian ruble dropped 3.4% in 2005 and the real effective rate fell 1.2%.

Source:

http://www.interfax.com/3/215439/news.aspx

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