MINSK: Belarussians were in a panic over the Russian rouble’s plunge, rushing to convert their savings to dollars and euros as they fear a devaluation of their currency.
The run on the Belarussian rouble forced the central bank to announce a “temporary” tax of 30 percent on all purchases of foreign currency. The bank also required all exporters to convert half of their foreign revenues into local currency.
Interest rates were raised to encourage Belarussians to keep their money in their bank accounts, according to a statement published on the central bank’s website.
The Belarussian rouble is not officially pegged to the Russian currency, but the ex-Soviet country’s economy is heavily dependent on its giant neighbour.
Russia, which derives about half of its revenues from energy exports, is ailing under the double whammy of plunging crude prices and Western sanctions.
Its currency has lost about half of its value since the beginning of the year.
Belarus’s leader Alexander Lukashenko admitted that his country’s economy has been hard hit, as 42 percent of its exports are bound for Russia.
Nevertheless, he insisted that Belarus can withstand the turbulence.
“We would like to get through this period calmly. So far we have the strength for this,” he said, according to state news agency Belta. AFP
