Program for Social and Economic Development (PSED) 2016 –2020

Improvement of monetary and foreign exchange policy

It is planned to continue conducting monetary policy in the monetary targeting regime. In the middle term, the transfer to the inflationary targeting regime is presupposed in view of creating necessary conditions.

The main aim of the monetary policy is a 5% decrease of the inflation level by 2020. This will become the most important condition for growth of trust in the Belarusian ruble and higher attractiveness of loans for economic entities and households.

Development of competitiveness in the banking sector of the economy and introduction of modern technologies will promote the decrease in the price and increase in the quality of the baking services. According to the plans, the refinance rate will become the basic instrument for regulating interest rates in the economy. Based on the 2017 year’s results, the annual interest rates under the new loans in the national currency are presupposed at the level of 17-18%, 2018 — 14-15%, 2019 — 11-12%, 2020 — 9-11%.

Available loans will become the stimulus for the growth of industry, long-term investments, and wider involvement of the SMEs in the economy.

By the end of 2018, the dedollarization of the economy is to be finished, within the framework of which the usage of foreign currency in settlements, as well as in generation of prices, rates, duties and other payments, will be excluded in the territory of the Republic of Belarus.

The liberalization of the foreign exchange system is to be implemented. For this purpose, a stage-by-stage cancellation of the obligatory sale of foreign currency is planned by 2018, and cancellation of the targeted purchase of the foreign currency is planned in 2018. In addition, the restrictions on opening accounts in foreign banks will be lifted since 2020.

A flexible mechanism of the national currency exchange rate generation is planned together with minimizing the participation of the National Bank in the foreign exchange market within the framework of orientation toward the dynamics of the foreign currency basket value.

Achieving the price stability, as well as building gold and foreign exchange reserves of the state up to a secure level, will make it possible to ensure maintenance of sustainability in the foreign exchange market.

Full Program for Sociаl and Economic Development 2016-2020
Monetary Policy Guidelines (MPG)