Restrictions on reserving funds for currency purchase will be lifted soon - P.Prokopovich

March 23, Minsk /BELTA/. The increased period for reserving funds for currency purchase in Belarus will be canceled in the near future. This was announced to a BELTA correspondent by Chairman of the Board of the National Bank of Belarus Petr Prokopovich. In accordance with the decision of the Board of OJSC "Belarusian Currency and Stock Exchange" from March 16, 2011, the period for reserving funds in Belarusian rubles for the purchase of foreign currency on exchange trading was temporarily increased to 30 calendar days. A corresponding letter was sent to Belarusian banks on March 15. The purpose of the adopted decision was to consolidate the main volume of demand and supply of economic entities in the over-the-counter currency market. This allowed for an increase in the role of market mechanisms for balancing supply and demand, led to an increase in the effectiveness of the National Bank's intervention policy in the domestic currency market, and also increased opportunities for more efficient distribution and use of currency resources in the economy. At the same time, the possibility of free purchase of foreign currency by economic entities, both on the exchange and over-the-counter markets, as well as free disposal of available currency resources and incoming currency earnings for settlements on obligations within the framework of ongoing foreign trade and financial operations, was preserved. Uninterrupted satisfaction of the population's demand for foreign currency was ensured by banks both from their own funds and, if necessary, by purchasing foreign currency from the National Bank for these purposes. On March 22, the National Bank of Belarus canceled the effect of this letter. Thus, banks can satisfy the population's demand from their own currency funds or buy currency for exchange offices on the exchange. "There should be no issues regarding the population: we are not changing the rules for buying/selling currency, we are not changing the conditions, we are not introducing any currency restrictions. And there will be no new currency restrictions in the near future," said Petr Prokopovich. "On the contrary, today or tomorrow we will make a decision to lift our restrictions on reserving funds for currency purchase." "Now the panic demand from the population has ended, the population has calmed down, but now entrepreneurs are also buying currency. However, we will not support entrepreneurs," emphasized Petr Prokopovich. The crisis is over, panic demand is over. Now banks will sell currency within the limits of what they have, and what the population sells and buys. At the same time, Petr Prokopovich believes that there is enough currency for people's lives today. "There is and will be currency in exchange offices: there is a lot of currency with the population today, and it will continue to circulate, besides, banks themselves also have currency," he said. The head of the National Bank added that it is "necessary to create a safety cushion for the economy, for the entire country, for all our people." To this end, the National Bank plans to increase gold and foreign exchange reserves to $10 billion this year. -0-