Belarus central bank hedges ruble deposits against FX risks

By bne IntelliNews December 19, 2014

All large Belarusian banks will introduce fixed-term guaranteed savings accounts, where deposits in Belarusian rubles will be indexed in the event of changes of the ruble exchange rate, the National Bank of Belarus (NBB) has announced.  “This will protect savings in the national currency from exchange rate risks and will increase their appeal compared to foreign currency,” the National Bank underlined.

Moreover, the National Bank increased the interest rates on constantly available two-way liquidity support transactions. “This, in turn, will result in a proportional increase in the interest rates on deposits in the national currency,” the National Bank said.

The monetary policy will be toughened in order to curb the increase in the money supply and to raise the cost of money. Banks are recommended to refrain from expanding the loan portfolio in Belarusian rubles, and from changing the currency of borrowed funds until 1 February 2015.

These and other measures will increase the attractiveness of savings in Belarusian rubles, balance out the currency market amidst increased demand for foreign currency, and prevent speculation.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

RBI issues €650mn of AT1 hybrid securities

Raiffeisen Bank International (RBI), the second largest bank operating across Central and Eastern Europe by assets, has issued €650mn of perpetual additional Tier 1 capital (AT1). ATI ... more

Belarus central bank to cut key rate by 1 pp to 12% in July

The National Bank of Belarus (NBB) will reduce its benchmark interest rate by 1 percentage point (pp) to 12% on July 19, the regulator said on June 28. The central bank attributed the move to the ... more

Most Read

  1. Erdogan lashes out at Germany, Nato, says "God willing" he'll have Russian missiles soon
    1 day ago
  2. STOLYPIN: Donbas continues to be as unpredictable as it is unloved
    2 days ago
  3. Ukrainian farmers turn to Donbas veterans for protection from raiders
    1 day ago
  4. EU allows Gazprom to use an additional 40% of OPAL gas pipeline's capacity
    2 days ago
  5. Tajik president’s 23-year old daughter appointed deputy head of largest Tajik bank
    7 days ago
  1. Erdogan lashes out at Germany, Nato, says "God willing" he'll have Russian missiles soon
    1 day ago
  2. CHINA RISING: When sleeping giants meet
    16 days ago
  3. Belarus’ retail king Euroopt goes on the road
    21 days ago
  4. STOLYPIN: Donbas continues to be as unpredictable as it is unloved
    2 days ago
  5. STOLYPIN: Russia’s cyber-challenge cuts both ways
    23 days ago

Selected articles from our premium news/views wire IntelliNews Pro

Login to IntelliNews Pro
Get IntelliNews Pro

Reports

Dismiss