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National Bank denies talks over Russian ruble adoption

There are no talks over the introduction of the Russian ruble in Belarus, the National Bank of Belarus (NBB) said in a statement on Tuesday.

The NBB said that discussions on the replacement of the rubel with the Russian currency had intensified recently, but stressed that there were no grounds for the controversial measure.

The introduction of a foreign currency in Belarus would not help the country strengthen macroeconomic stability but would prevent it from conducting an independent monetary policy, which could slow down economic growth or lead to recession and a rise in unemployment altogether, the National Bank warned.

"These aspects to a great extent complicate the process of the unilateral adoption of a foreign currency as a legal tender on the territory of the Republic of Belarus and are evidence of potentially high costs that the economy may face," the statement said.

The NBB said that the introduction of a common currency by two countries must serve the interests of both and contribute to long-term economic growth and higher living standards for their citizens. It said that the member states of the Common Economic Zone, which currently includes Belarus, Kazakhstan and Russia, could adopt a common currency in the future. //BelaPAN