Belarus’ 2022 monetary policy targets 6% inflation
<p> MINSK, Dec 9 - PrimePress. Belarus’ monetary policy in 2022 will aim at retraining inflation at 6%, in accordance with President Lukashenko’s ordinance #482 of 9 Dec 2021 “On Approving the Basic Guidelines of the Monetary Policy of the Republic of Belarus for 2022”, said the presidential press service. </p> <p> </p> <p> “Money supply growth will continue to stay under control. The average broad money supply will increase by 7-13% per annum and the ruble monetary base by 8-13%. The National Bank is instructed to form credit conditions at a level that would support economic activity and prevent the build-up of systemic risks. At the same time, it is assumed that the economy’s debt to banks will grow by 7-11% in 2022,” the statement reads. </p> <p> </p> <p> According to the ordinance, the floating exchange rate policy will continue, based on supply and demand on the foreign exchange market. Foreign exchange interventions are allowed in order to avoid sharp fluctuations in the exchange rate of the Belarusian ruble and to replenish the foreign exchange reserves. </p> <p> </p> <p> Given the level of transfer to repay the public debt, it is projected that Belarus’ FX reserves will be at least $7 billion at the end of 2022. </p> <p> </p> <p> As previously reported, Belarus inflation stood at 0.9% in October 2021 and 8.5% in January-October. The official inflation forecast for 2021 is not more than 5%. According to the forecast, the increase in the average broad money supply (December 2021 on December 2020) may amount to 7-10%. In January-November 2021, broad money decreased by 2.7%. Belarus' international reserve assets stood at $8.469bn as of December 1, 2021. In accordance with the monetary and credit policy guidelines for 2021, they should amount to at least $6 billion on January 1, 2022. End </p>
2021-12-10
Primepress
Belarus’ 2022 monetary policy targets 6% inflation
MINSK, Dec 9 - PrimePress. Belarus’ monetary policy in 2022 will aim at retraining inflation at 6%, in accordance with President Lukashenko’s ordinance #482 of 9 Dec 2021 “On Approving the Basic Guidelines of the Monetary Policy of the Republic of Belarus for 2022”, said the presidential press service.
“Money supply growth will continue to stay under control. The average broad money supply will increase by 7-13% per annum and the ruble monetary base by 8-13%. The National Bank is instructed to form credit conditions at a level that would support economic activity and prevent the build-up of systemic risks. At the same time, it is assumed that the economy’s debt to banks will grow by 7-11% in 2022,” the statement reads.
According to the ordinance, the floating exchange rate policy will continue, based on supply and demand on the foreign exchange market. Foreign exchange interventions are allowed in order to avoid sharp fluctuations in the exchange rate of the Belarusian ruble and to replenish the foreign exchange reserves.
Given the level of transfer to repay the public debt, it is projected that Belarus’ FX reserves will be at least $7 billion at the end of 2022.
As previously reported, Belarus inflation stood at 0.9% in October 2021 and 8.5% in January-October. The official inflation forecast for 2021 is not more than 5%. According to the forecast, the increase in the average broad money supply (December 2021 on December 2020) may amount to 7-10%. In January-November 2021, broad money decreased by 2.7%. Belarus' international reserve assets stood at $8.469bn as of December 1, 2021. In accordance with the monetary and credit policy guidelines for 2021, they should amount to at least $6 billion on January 1, 2022. End