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Expert skeptical about additional trading session at currency and stock exchange

An expert has expressed skepticism about the introduction of an additional trading session at the Belarusian Currency and Stock Exchange for determining the Belarusian rubel’s market value.

The move will "legalize" the multiplicity of currency exchange rates in Belarus, Syarhey Balykin, leader of the Association of Small and Medium-Sized Businesses, told BelaPAN on Tuesday, one day before the session was to take place for the first time.

The expert acknowledged that the session would allow businesses to buy foreign currency legally. "This will make the economic situation more predictable and may eventually lead to a certain reduction in prices," he predicted.

At the same time, he warned, the measure will only offer short-term solutions to the country's currency crisis and could have an adverse impact on the economy in the long run. "First, a big gap between exchange rates provokes corruption and enriches those who have access to foreign currency at the primary session. Second, the requirement that exporters sell foreign currency at an understated exchange rate is a de facto additional tax on them," Mr. Balykin said.

The government's reluctance to set a single exchange rate of the Belarusian rubel through one trading session is evidence of its "fear of market economy," according to Mr. Balykin. "In addition, much will depend on how much free trading at the additional session will be. Today there is a big risk of government intervention in the exchange rate determination," he said. //BelaPAN