Republic of Belarus: Selected Issues
IMF Staff Country Reports, January 17, 2019
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- Republic of Belarus: Selected Issues
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Bibliographic details
- Published: January 17, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484393956.002
Overview and purpose
- Takes stock of the current level of dollarization in Belarus in both historic and international perspective.
- Reviews recent measures and international best practice to draw recommendations for a successful de-dollarization framework.
Key findings on dollarization
- Belarus has a high level of loan and deposit dollarization as a result of repeated external crises and hyperinflation.
- Dollarization in Belarus is much higher than many other countries, accounting for various drivers of dollarization.
- Dollarization has been decreasing but it is still higher than a decade ago.
Recent policy actions
- Authorities have taken steps to liberalize the foreign exchange (FX) market, including:
- Eliminating the FX surrender requirement.
- Easing the registration procedure for FX transactions.
Gaps and recommended strategic approach
- An overarching and publicly communicated national strategy to de-dollarize the economy is a missing piece of the puzzle.
- Purposes and benefits of such a strategy:
- Serve as an important signaling and commitment device.
- Help educate borrowers about the risks (private and social) of FX borrowing.
- Contain an operational roadmap to ensure coherence of existing policies, and coordinate policy and operational steps.
Subject tags and keywords (as provided)
- Subjects: Capital markets, Currencies, De-dollarization, Dollarization, Financial markets, Foreign exchange, Monetary policy, Money
- Keywords: Belarus, benchmark dollarization level, Capital markets, cash flow, CR, credit growth, Currencies, De-dollarization, deposit dollarization, Dollarization, dollarization in Belarus, Global, ISCR, lending, lending to household, Loan dollarization, Soe FX
Content in this bundle
- Country Report