Actual issues of monetary policy were considered at the expanded meeting of the Board of the National Bank
Ensuring price and financial stability in January-September 2019, as well as increasing the role of trade finance instruments in export development, were considered at the expanded meeting of the Board of the National Bank of the Republic of Belarus on October 17, 2019.
In 2019 Q3, the growth in consumer prices slowed down, as expected, and in September amounted to 5.3% in annual terms compared to 5.7% in June 2019. According to the National Bank’s estimates, the inflation will stabilize near 5% by the end of the year
The maintenance of a neutral character of the National Bank’s monetary policy was noted.
The financial sector of the Republic of Belarus remains stable in relation to the main risks. Measures are being taken to decrease the predominance of foreign currency in the economy. The work continues to maintain the level of gold and foreign exchange reserves and improve their structure, ensure secure and efficient functioning of banks and other financial organizations, as well as the payment system.
Another issue discussed during the meeting was the use of trade finance instruments to increase the export potential of the Republic of Belarus.
Currently, Belarusian banks can provide a diverse list of such instruments as documentary letter of credit, bank guarantee, bank payment obligation, documentary collection, and factoring. These instruments are not only a means of obtaining financing, but at the same time they minimize foreign trade risks, ensuring that counterparties comply with the terms of the transaction.
As noted, the National Bank takes measures to improve legislation in order to enhance and expand the scope of application of trade finance instruments. At the same time, it was emphasized that commercial banks should also intensify the activities on informing economic entities about the potential of these tools to increase exports.
The texts of the reports of Dmitry Murin, Head of Monetary Policy and Economic Analysis Directorate, "Ensuring Price and Financial Stability in January – September 2019" (Russian version) and Ilona Lednitskaya, Head of Banking Operations Regulation Directorate, "The Role of Trade Finance Instruments in Export Development" (Russian version) were published on the National Bank’s website on October 18, 2019.