BELARUS NEWS AND ANALYSIS

DATE:

12/12/2008

Belarus c.bank says currency to drop no further

MINSK, Dec 12 (Reuters) - The Belarussian rouble sank to its floor level of 2,200 to the dollar on Friday, prompting notice from the central bank that it would allow the currency to drop no further.

In accordance with central bank directives, the Belarusssian rouble's official rate is set on the basis of trades the previous day. The bank set Friday's rate at 2,198 to the dollar.

"The official rate of the Belarussian rouble will not exceed 2,200 to the dollar," the central bank said in a statement statement said.

"The central bank has reached the (floor) level of the corridor of the rouble's rate to the dollar. This was caused primarily by the significant strengthening of the dollar on world markets in August."

The Belarussian rouble, pegged to the dollar only since the start of the year, stood at 2,149 to the U.S. currency in January and strengthened over the course of several months, hitting a peak this September at 2,111.

But from October it began sliding in the face of increased demand for dollars on the domestic market.

The central bank's reserves shrank in November to $4.5 billion from $4.8 billion despite receiving a $1 billion credit from Russia the same month. (Reporting by Andrei Makhovksy, writing by Ron Popeski; Editing by Ron Askew)

Source:

http://www.guardian.co.uk/business/feedarticle/8149260

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